Acquisition of an LDPE recycling company in Italy

• Acquisition of Pronet S.A by NSC Global Limited. M&A deal in the IT Networking and Managed Services industry
• Revenue (’07): 2,7 million EUR
• Employees: 30
• Reason for Sale: Strategic Acquisition
• Location: Spain (Barcelona)

The target company uses a mechanical process to convert plastic scrap into resin suitable for commercial and industrial applications. As part of the buyer group, the target will continue to expand its production to meet the demand for recycled LDPE in Europe. The acquired company is renowned in the field of LDPE recycling in northern Italy and will be able to further penetrate the Italian market by providing its clients with higher-quality recycled resin. The target company also follows the principles of a circular economy with full dedication and focus.

Strategy of the international plastic recycling company

This acquisition will help the buyer to expand its presence in Italy. The buyer is a large-sized financially strong company with solid operations in the plastic recycling sector that is focused on becoming 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 strategy and consolidate the European market as much as possible to become a conglomerate in the industry. 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 Italy from its existing network. Then, CFIE scanned and contacted the potential targets throughout Italy. More than 25 LDPE recycling companies were contacted in the local language (Italian) and some of the greenfield projects for setting up an LDPE facility were also explored. We organized video calls with various potential targets and supported visits of both the target company and the buyer company. CFIE analyzed the most synergistic targets and assisted the buyer in finalizing the selection of the most suitable target. Furthermore, CFIE supported the buyer in the process of performing due diligence on 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 recycling companies and explained the buyer’s strategy. He then identified the most suitable target that fit the buyer’s strategy and requirements.

Highlights of the acquisition of this plastic recycling company

• Both companies are active recyclers and granule/resin producers from the plastic industry
• The buyer’s strategy to set up new production lines will help the target to increase its capacity and geographical reach
• The target company has a focus on LDPE recycling and will be able to cross-sell its products with the support of the buyer
• The buyer company will invest further to scale up the business of the target

Information about business sales and acquisitions in the plastic industry

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.