Acquisition of a plastic recycling company in Spain

CFIE assisted in the acquisition of a Spanish plastic recycling company by an international synergistic buyer. Visit our website for details on how this company in Spain was acquired.

Buyer for a Spanish plastic recycling company

• The target (acquired company) is a plastic recycling company in Spain
• The target had revenue of more than 15 million EUR
• The buyer is an international plastic recycling company that is mainly active in LDPE recycling and plastic granule production
• CFIE business acquisition input: The CFIE plastic M&A team consisting of Govert Derks did a screening of the European plastic recycling market. The CFIE team already knew many plastic recycling companies that have an interest in selling their company/business. This acquisition is an important addition to the buyer’s European market share. The buyer now has increased capacity and a footprint in Spain as well to complement its operations in other parts of Europe.

The acquired company focuses on plastic recycling and producing LDPE along with granules. The company has rich experience in its business segment and this acquisition represents an important step in building a pan-European plastic recycling platform. Under the buyer’s leadership, the company plans to nearly double its production capacity to meet the growing demand for recycled LDPE in Europe. The target utilizes a mechanical process to transform plastic waste into high-quality resin suitable for commercial and industrial applications.

The buyer is a large-sized company with strong operations in the plastic recycling sector and is focused on becoming a market leader. The company plans to continue its acquisition strategy and consolidate the European market to capture the plastic recycling market as much as possible and become a conglomerate in the industry. Further, the buyer wants to acquire more companies in Europe to have a meaningful impact on its continued efforts to transform and decarbonize the European plastic market through increased LDPE recycling capacity.

CFIE showed the buyer various potential targets in Spain from its contacts. Then, CFIE scanned and contacted the potential targets throughout Europe. More than 30 plastic recycling companies were contacted in the local language (Spanish). We organized video calls with various potential targets and supported visits of both the target company and the buyer company. CFIE prepared financial models and analyzed the most synergistic targets. Furthermore, CFIE prepared a draft NBO and assisted in the 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 various advantages of further growth with a strong strategic partner. Govert Derks spoke to many plastic recycling companies and explained the buyer’s strategy. In this way, they sourced the most suitable targets that fit this buyer best. After initiating the talks, Govert arranged visits between the buyer and various potential targets. As part of the process, Govert Derks also prepared a LOI that was further extended by the legal team of the buyer.

• Both companies are active suppliers in the plastic industry
• Faster growth of this Spanish plastic recycling company can be achieved on a global basis with the support of an international buyer
• The target company has a focus on plastic recycling and will be able to cross-sell its products with the support of the buyer
• The international plastic recycling company will invest further to scale up the business of the target

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.