H.I.G. Europe Backs Management Buy-Out of Der Grüne Punkt

H.I.G. Europe, the European subsidiary of the global private equity investment firm H.I.G. Capital, announced that funds advised by H.I.G. European Capital Partners LLP have made a significant investment in the German recycling company Der Grüne Punkt – Duales System Deutschland GmbH (DSD).

DSD, based in Cologne, Germany, operates take-back recycling programs throughout Germany. The take-back programs include close-to-home collection and recovery of consumer and transport packaging materials, as well as collection and recycling of used electrical equipment and facility waste disposal services.

According to a release, DSD is also one of Europe’s largest raw materials trading companies. In 2010, DSD generated revenues of more than €600 million (US$810 million). DSD organizes the collection, sorting and recycling of waste packaging in Germany. The company works in parallel to municipal waste collection in the country. In addition to its Cologne headquarters, the company has offices in Berlin, Norderstedt and Augsburg, Germany.

H.I.G. Europe is supporting DSD’s management team and investing alongside a group of private investors, represented by Philippe von Stauffenberg of the investment firm Solidus Partners who is also taking the position of DSD’s executive chairman.

H.I.G. Europe and the investor group are acquiring the company from Kohlberg Kravis Roberts & Co., which acquired DSD in January 2005. Together with its new investors, DSD’s management team plans to expand the company’s recycling platform throughout Europe and expand into complementary services.

“DSD has an outstanding management team and is a pioneer in the 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 H.I.G. working closely with management teams to grow internationally and develop new markets and product lines,” says Matthias Allgaier, managing director of H.I.G. Europe.

“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,” adds Stefan Schreiter, DSD’s CEO.

“We believe that DSD has great potential – not only in Germany. With the strong Der Grüne Punkt brand and together with the management team, we will embark on a growth strategy over the next few years. As the leader in the dual system market, DSD has a strong client base with some 18,000 environmentally aware customers. We want to further expand this platform in Europe and develop additional “green services” with a focus on sustainability and environmental protection for both existing and new clients. We believe that together with H.I.G.’s pan-European presence and resources, we will be well positioned to achieve these goals,” says von Stauffenberg.