US Firm Set To Make Bid for Germany’s DSD

Kohlberg Kravis Roberts & Co., a private equity firm based in the United States, said it will launch a $345 million takeover bid for German recycling company Duales System Deutschland AG is best know for its Green Dot program in Germany. DSD AG is involved in the collection and recycling of used sales packaging in Germany. The company was founded in 1990 to help companies develop an effective collection program.

The company organizes the nationwide collection, sorting and recycling of used sales packaging throughout Germany. Since it was founded, the Dual System has forwarded some 57 million metric tons of packaging waste for recycling and has continuously fulfilled the targets of the Packaging Ordinance.

KKR is expected to pay around $345 million for all of DSD’s shares.

The offer will be made through Germany's Deutsche Umwelt Investment AG.

According to press reports KKR said the takeover offer runs until Dec. 23, adding that the deal can be completed only if it can acquire 95 percent of the shares.

The takeover will be funded with the firm's own money and with loans from Japan's Mizuho Corporate Bank, part of the Mizuho Financial Group Inc., and Germany's HVB Group AG, the company said.

An initial public offering for Duales System is planned in the next three to five years, the equity firm said.