- UAB Ecso is GreenGroup’s second acquisition in recent weeks following its purchase of SIGAD in July
- GreenGroup will invest €150 million to €200 million over the next few years as part of a its M&A strategy
- UAB Ecso is a low-density polyethylene recycling company
Abris Capital Partners-backed GreenGroup announced on Monday that it has bought UAB Ecso, a low-density polyethylene recycling company headquartered in Vilnius. Bucharest-based GreenGroup is an integrated recycling group that specialises in polyethylene terephthalate recycling and production of polyester staple fibre as well as offering electronics recycling, glass waste recycling and industrial waste management services.
Abris was established in 2007 and is headquartered in Warsaw, Poland. It is an ESG transformation specialist private equity investor which focuses on mid-market opportunities in central Europe. It looks to drive growth in companies via ESG transformation. It has owned GreenGroup since 2016 and under its ownership GreenGroup has embarked on a strategy that will see the company invest between €150 million to €200 million in M&A over the next few years. This deal follows GreenGroup’s purchase of SIGAD, a Romanian developer of environmental reporting software, in July.
“This latest acquisition consolidates GreenGroup’s recycling activities over the past 20 years and is a decisive step in the group’s strategy to become a key player in polyolefins recycling in the region,” said Adrian Stănculescu, partner and head of Abris Romania. “Furthermore, it is a strategic investment that reinforces the group’s commitment to sustainability and to tackling the most pressing environmental issues, such as plastic pollution and reducing carbon footprints.”
“The Lithuanian model proved to be a local success for closed-loop resourcing of plastic waste, aligned with the circular economy objectives,” said Constantin Damov, GreenGroup chairman of the board. “With this investment, we are positioning the group as the first line of defence for limiting the environmental impact of single-use plastics – a group fitting both PET and polyolefins. Our objective is to scale this model in the region and other countries as well.”
Polyethylene is one of the most common types of plastics, amounting to 40% of total plastics consumption in Europe. Recycled polyethylene granules have multiple applications, especially in the packing industry, and demand for LDPE packing applications is rising.