Largest integrated recycling group in south-eastern Europe eyes IPO
The European Bank for Reconstruction and Development (EBRD) has sold its stake in Romania’s Green Group, a company specialising in consumer packaging waste recycling, as the firm embarks on its next stage of development and sets its sights on a public listing.
The Bank’s shareholding, as well as the stake owned by Global Finance, an Athens-based private equity firm focused on south-eastern Europe, is being taken over by Abris Capital, a leading Warsaw-based private equity fund focusing on central and eastern Europe.
Matteo Patrone, Regional Director for EBRD operations in Romania and Bulgaria, said: “After four years as a shareholder the EBRD is proud to complete its role in Green Group. Our finance and advice has helped the company become the largest integrated recycling group in south-eastern Europe with real value and potential. We are confident that Abris Capital will take Green Group, as well as recycling in Romania, to the next level.”
Green Group is the leading recycling company in Romania and one of the industry leaders in Europe with a consolidated turnover of €90 million in 2015. The company recycles plastic bottles, electric and electronic waste, batteries, fluorescent lamps and glass.
Green Group is responsible for Sigurec, a well-known nationwide infrastructure for collecting packaging as well as electric and electronic waste, which connects consumers with the recycler via special reverse vending machines placed in large supermarkets. Green Group employs high-end innovation and technology, and engages retailers, citizens and communities to stop important volumes of recyclables get wasted in the landfills.
Cezar Scarlat, partner and Head of Abris Romania, said: “First and foremost we are impressed by the very competent and dedicated management team led by Mr. Clement Hung, essentially, the architect of the recycling industry in Romania. We believe that Green Group is ideally positioned to take advantage of the circular economy that is rapidly taking shape in Romania and worldwide.”
Clement Hung, the founder and CEO of Green Group, added: “We are delighted to have been able to secure a new strong partner for the long-term development of our group.”
Under the new shareholder structure, Green Group aims to consolidate its waste collection system, extend the integrated recycling park and list its shares on the Bucharest Stock Exchange.
The EBRD has invested €6.8 million in Green Group’s shares in 2011, alongside Global Finance.
The Bank is a leading institutional investor in Romania. It has invested over €7 billion in the country to date and has also mobilised more than €14 billion from other sources of financing.