Acquisition of a plastic film recycling company in the Netherlands

• The target (acquired company) is a plastic film recycling company based in the Netherlands
• The target was a medium-sized company at the time of the acquisition
• The buyer is an international plastic recycling company that is mainly active in plastic film or polyethylene (PE) recycling and granulation for use by end product manufacturers
• CFIE business acquisition input: The CFIE plastic M&A team consisting of Govert Derks did a screening of various potential Dutch targets from the plastic recycling market in the Netherlands. The CFIE team already knew of a multitude of PE and plastic film recycling companies that have an interest in selling their company/business. This acquisition is an important step towards achieving the vision of the buyer to become the largest independent producer of recycled LDPE and secure a leading position in the LDPE recycling segment in Europe as a mission critical to the establishment of a circular solution for the growing plastic waste problem in Europe.

Overview of the target company (plastic film recycling company in the Netherlands)

The target company is a producer of recycled LDPE and is in the eastern part of the Netherlands. For over 35 years, it has supplied recycled LDPE resin to leading customers. Further, it utilizes a mechanical process to transform plastic waste from commercial, industrial, and agricultural sources into resin suitable for commercial and industrial applications. The target is also well known for producing recycled LDPE from post-consumer and post-agricultural plastic waste which can be used in packaging applications.

This acquisition will provide a platform for the buyer to continue to penetrate the Dutch and German markets while being able to serve more international clients thanks to higher quality plastic flakes being produced through the latest technology available.
The buyer is a financially strong company and a pan-European plastic recycling platform transforming polyethylene (PE) plastic waste into resin suitable for a variety of commercial and industrial flexible plastic applications. In addition, it is determined to become a market leader. The company focuses on the production of high-quality recycled low-density polyethylene from post-industrial and commercial films. Further, it plans to continue its acquisition spree and do add-on acquisitions to consolidate the industry in Europe.

CFIE presented many potential targets in the Netherlands from its existing network. Then, CFIE analyzed and contacted these potential targets throughout the Netherlands. More than 20 LDPE recycling companies were contacted in the local language (Dutch) and CFIE visited the most suitable targets independently as well as with the buyer at least 3-4 times. After selecting the target, we drafted a clear and detailed description of the target company and presented the same to the buyer. CFIE assisted the buyer in the preparation of the LOI, term sheet, and financial model. Furthermore, we also supported the buyer in coordinating and solving any issues related to the entire due diligence process of the target.
The CFIE M&A team helps international buyers in acquisitions. The work consists of sourcing the right targets for acquisition. The CFIE plastic team already knows a large set of plastic companies across Europe that have a potential interest in a business sale. CFIE facilitates communication with the targets and explains to the business owners about the various advantages of further growth with a strong strategic partner. Govert Derks spoke to many plastic film recycling companies in the Netherlands and explained the buyer’s strategy. This led to the identification of the most suitable target that fit the buyer’s strategic framework in the most appropriate way.

• Both companies are active recyclers of PE and LDPE
• The buyer’s strategy of aggressive growth through organic and inorganic routes will add a lot of value to the target’s development and increase geographical reach
• The target company has a focus on LDPE recycling and will be able to leverage the network of the buyer to reach more customers
• The buyer company will invest further to expand the business of the target across Europe

Feel free to contact us for further details about this plastic recycling company acquisition. If you are looking for acquisitions or a business sale of plastic recycling companies in other European countries, it is also good to contact us. We know many targets across Europe and many of these could be open to a sale. For more plastic companies for sale, please visit the section plastic companies for sale. For more buyers of plastic companies, please visit the section plastic companies wanted.