Investment fund Abris Capital takes over recycling company Green Group

The only recycling industrial park in Romania, Green Group, was taken over by investment fund Abris Capital, after several months of negotiations with the majority shareholders: European Bank for Regional Development EBRD and Global Finance, a Greek fund.

Following the acquisition of Cargus and Urgent Curier, and Pehart Tec (paper producer), Abris Capital Partners enters the market of waste management in Romania for a business worth 90 million EUR. Company Green Group has operations also in Serbia and Macedonia (Greentech, Greenfiber International, GreenWEEE, GreenLamp, GreenGlass Recycling and Total Waste Management, all six under the umbrella of Green Group).

"The new acquisition is part of our strategy to pursue the acquisition policy in Romania and to contribute to developing the local economy", confesses Cezar Scarlat, partner ABRIS, and general manager ABRIS Romania. The private equity fund only takes on majority shares in the companies they target.

EBRD exits the business after four years, and the Greeks from Global Finance, after 5 years: "It has been a difficult negotiation, with multiple parties involved, including amonf the management. We consider we managed to get the right balance for everyone to be happy at the end; also, we are happy to collect the results of our efforts in the past five years", says Theodore Kiakidis, partner Global Finance.

In the transaction, EBRD and Global Finance were represented by law firm Bondoc and Associates, the management by Rampart Capital and Reff & Associates, while Abris was counseled by Clifford Chance Badea for legal matters, PwC on tax and financial, Roland Berger and PCI Wood Mackenzie on commercial law. Also, SGS provided assistance for Abris on environment protection.

The transaction is yet to be approved by the Competition Council.

by Mihaela Constantin