Value4Capital exits from Kom-Eko via CEE Equity Partners

‘Financial returns can go with improved sustainability,’ said Value4Capital partner Piotr Misztal

  • Kom-Eko provides municipal and commercial waste collection, sorting, processing and landfilling
  • Kom-Eko more than doubled its revenues and almost tripled its EBITDA during Value4Capital’s holding
  • The firm plans to explore more acquisition opportunities

Value4Capital made a full exit from waste management company Kom-Eko, with funds advised by CEE Equity Partners taking the firm.

Kom-Eko provides services such as municipal and commercial waste collection, sorting, processing and landfilling in Lublin, Krasnik and Swidnik in south-east Poland. Bought in 2018, it was the first investment of Value4Capital’s V4C Poland Plus Fund. The 2018 deal was supported by co-investments from the management team and some of the fund’s investors.

Since that investment, Kom-Eko has more than doubled its revenues and almost tripled its EBITDA. It has also expanded its processing capacity and completed two “major” add-ons, according to the firms.

Kom-Eko plans to “further explore acquisition opportunities and seeks to build a footprint in segments that will further solidify its regional position and continue to enhance its contribution to sustainability in waste management services”, according to a statement.

“Since our investment, sustainability and the circular economy have become even more critical to society,” said Piotr Misztal, V4C Partner and deal leader, in a statement. “Our investment in Kom-Eko has contributed to the Lublin region achieving an increased ratio of recycling from its waste stream. This shows that financial returns can go with improved sustainability.”

Other private equity firms have also shown an interest in waste management companies. The board of UK waste management firm Biffa agreed in late September to a take-private deal with Energy Capital Partners that valued the company at around £1.3 billion ($1.4 billion; €1.5 billion).

Value4Capital is a lower mid-market Polish and central European buy-out manager, with offices in Luxembourg, Warsaw and Bucharest. The V4C Poland Plus Fund held its final closing in July 2019 at €91 million.

CEE Equity Partners is headquartered in Nicosia and is the investment advisor for two China-CEE Funds with committed funds of over $1.2 billion that look for opportunities in the CEE region. China Exim Bank established the funds in partnership with other institutional investors in the CEE region.