Funds advised by HIG European Capital Partners have made a significant investment in Der Grüne Punkt – Duales System Deutschland GmbH, a leading German recycling company.
Based in Cologne, Germany, Der Grüne Punkt – Duales System Deutschland GmbH (DSD) is the pioneer and market leader in take-back recycling systems. This includes close-to-home collection and recovery of consumer and transport packaging materials, as well as eco-friendly, cost-efficient recycling of used electrical equipment and facility waste disposal services. DSD is also one of Europe’s largest raw materials trading companies. In 2010, DSD generated revenues of over EUR600 million.
HIG Europe is backing DSD’s management team and investing alongside a group of private investors, represented by Philippe von Stauffenberg of Solidus Partners who is also taking the position of executive chairman. HIG Europe and the investor group are acquiring the company from Kohlberg Kravis Roberts & Co which acquired DSD in January 2005 and transformed the retail- and industry sector-sponsored non-profit organisation into a private sector company operating in a deregulated market. Together with its new investors, DSD’s management team plans to expand the Company’s recycling platform throughout Europe and expand into complementary environmentally friendly services.
Matthias Allgaier, Managing Director at HIG Europe, says: “DSD has an outstanding management team and is a pioneer in development of leading recycling solutions. We are excited to back DSD to expand its geographic footprint and grow its product offering into adjacent environmentally friendly services. We view this investment as an excellent example of HIG working closely with management teams to grow internationally and develop new markets and product lines.”
Stefan Schreiter, CEO of DSD, says: “DSD has successfully transformed itself into a private sector company and a leading player in the dual system market. My management board colleagues and I remain committed to ensuring continuity for our clients and employees. Together with our new partners, we are looking forward to continuing the successful development of DSD in our new role as owner-entrepreneurs.”
The DSD investment marks HIG Europe’s ninth new deal investment in the last 12 months. With a full pipeline of activity, HIG Europe expects to make further deal announcements in the coming months.
