AMC Capital IV, advised by Mezzanine Management, has made an investmenmt in Plasta Group, which comprises Lithuanian recycled plastic rubbish bag producer Plasta and Swedish producer Rullpack.
Plasta is a major recycled plastic processing and manufacturing company in Europe, making over 500 million bags per year. The company boasts the largest recycling and extrusion plant in the Baltics and one of the largest in Europe, and operates a subsidiary in Sweden acquired in 2019. Most of the group’s revenues come from selling low-density polyethylene plastic bags which are made from post-consumer recycled materials.
Plasta marks the 10th deal for AMC Capital IV, which is Mezzanine Management’s largest vehicle raised with EUR264 million closed in 2018. The Fund has committed a sizeable and flexible funding package to support Plasta’s growth, comprised of preferred equity as well as a loan to finance the ambitious CAPEX program. AMC Capital IV is prepared to deploy further capital to support the company’s international growth and potential acquisitions. As a result of the transaction, AMC IV has acquired a significant minority stake in the business.
Piotr Sadowski, Partner and Head of Baltics at Mezzanine Management, says: “Plasta has proven itself a leader in Lithuania and beyond, and the team have done a tremendous job. There remains great opportunity to continue its impressive growth, particularly by cross-selling new products to its existing customer base. Our capital will help to support this, as well as potential strategic acquisitions which we are assessing together.”
Edward Gelbard, majority shareholder, and Vytas Poderis, CEO of Plasta Group, says: “We are very excited to have the financial and strategic backing of Mezzanine Management, an experienced investor in our dynamic region. Their flexible funding package was crafted to support our intention to focus on organic growth through new product development as well as select M&A. We know that Mezzanine Management’s experience means we’ll have their financial support as well as expertise in this key area.”
