Circular Resources, a Luxembourg-based company founded to provide a one-stop solution for companies committed to plastics recycling, has purchased all of the shares of Germany’s Green Dot group of waste management and recycling companies.
Green Dot, or Der Grüne Punkt in German, is part of a Hamburg, Germany-based affiliate of the private equity group HIG Capital, which recently signed a deal to buy Avient Corp.'s distribution business.
Included in the sale is DSD, Duales System Holding GmbH & Co. KG, which operates one of the oldest dual systems for collecting and recycling used sales packaging in Germany. Recently, DSD entered into various strategic partnerships in the waste management value chain, including waste sorting.
Green Dot also includes Systec Plastics in Hörstel and Systec Plastics Eisfeld GmbH, both of which produce high-quality recyclates from plastic household waste collected in the yellow bag and bin and are sold under the Systalen brand name.
According to a news release announcing the acquisition, the existing management at Green Dot will remain on board and will take a significant stake in the new company. The agreement is expected to enable further synergies between mechanical and chemical recycling of plastic waste in Europe to bring plastics currently lost from the value chain back into the recycling loop.
Circular Resources was founded by Carlos Monreal, who is also the founder and CEO of Plastic Energy, a global leader in the chemical recycling of plastic waste. Calling the acquisition a milestone for closed-loop recycling, Monreal stated that Circular Resources will fully support Green Dot's current well-established licensing, disposal and mechanical recycling business, and "complement it with the introduction of large-scale chemical recycling of plastic waste in Germany."
Waste has long since become a valuable raw material, noted Laurent Auguste, CEO of Circular Resources.
“The concept of renewable carbon is becoming increasingly important for a truly circular economy. Our goal is therefore a holistic solution for the recyclability of plastic. Together with Der Grüne Punkt we are developing a unique approach by combining sales packaging licensing and material flow access with mechanical and chemical recycling,” he said.
To that end, investment in mechanical recycling will continue to be made, said Michael Wiener, CEO of Green Dot. The proposed expansion in capacity of the German recycling plants in the group will be carried out as planned.
“In addition, together with the partners, we will develop solutions for mechanically non-recyclable plastic waste, including chemical recycling,” he added. "We will take the concept of extended product responsibility to a new level and offer our customers a one-stop-shop solution as part of an exclusive partnership.”
The company plans investments at one of its locations that will enable material flows that are currently still incinerated to instead be chemical recycled by means of pyrolysis.
While the existing management will remain in place, two new members will be joining the board. Ralf Huep and Karl-Georg Altenburg are both investing in Circular Resources through their investment fund CirCap and they will take a seat on the board of the group's holding company. Huepp will serve as non-executive chairman and Altenburg as director.
“We are determined to unlock the full potential of Green Dot. The company has pioneered the dual system in Germany, developed a very strong brand, adapted to various regulatory and market changes and is now ready to expand,” said Huepp. “The foundation is solid and the new shareholders will help fuel the company's growth.”