CDI Global | The Netherlands Successfully Supported Wadinko N.V. on the Divesment of AKG Kunststofgroep to Veolia

AKG produces a broad assortment of high-quality PP granulates made from mixtures of post-consumer and post-industrial PP waste. AKG granulates are sold to producers of plastic products, often substituting virgin plastics. Operating out of Vroomshoop in the Netherlands, AKG currently employs 53 people, has sold 37,000 tons of recycled material and has posted revenues of EUR 34 million in 2014. The company was 100% owned by Wadinko, an investor aiming to increase regional employment by supporting entrepreneurs.

Management and shareholder of AKG saw ample opportunity to grow the PP granulates business, yet:

· Wadinko was seeking a partner to co-fund the corresponding investments and / or an opportunity to fully divest the company within a limited time frame
· Securing input materials was key in developing the growth strategy of AKG
· Part of the business considered non-core had to be divested enabling to focus on PP granulates

CDI conducted a thorough analysis of the business, identifying historical gross margins per activity as a basis to forecast the growth plan of the company. CDI then developed an Information Memorandum based on this forecast, whilst deconsolidating the non-core activities from the historic financials, thus presenting a like for like overview of the historical and forecasted performance of the business. Prospective buyers were selected based on their ability to enhance the supply chain of AKG: strategic buyers that collect, sort and pre-process PP waste and financial buyers that could combine AKG with upstream activities to secure input materials.

On September, 1st, a transaction was concluded with Veolia, a strategic buyer that has access to input materials from all over Europe. Non-core assets were carved out by a legal demerger prior to completion with an SLA for a transitional period. AKG will become a centre of excellence for PP compounding within Veolia, thus further enhancing employment in the region

For further information, please contact:
Frits van Servellen at frits.vanservellen@cdiglobal.com or
Frank Govaert at frank.govaert@cdiglobal.com

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