Ara Partners | January 10, 2022
Repeats Group B.V. announced its launch and plan to build a pan-European plastics recycling platform focused on producing high-quality recycled low-density polyethylene with a €100 million equity commitment from Ara Partners. Ara Partners is a global private equity firm that specializes in industrial decarbonization investments.
Repeats utilizes a best-in-class mechanical process to transform post-commercial plastic waste into high-quality resin suitable for commercial and industrial applications. The company is scaling LDPE recycling capacity throughout Europe to address the shortage of supply compared to the growing demand required to meet industry sustainability and net zero targets, increasing consumer preferences for low-carbon products and stricter regulatory requirements around decarbonization.
Operations will be focused on core European markets characterized by dense population and underserved LDPE recycling capacity. Through a combination of greenfield development, acquisitions and strategic partnerships, Repeats and Ara are committed to building a leading LDPE recycling platform in Europe.
Repeats is led by Greg Rung and a team of LDPE recycling executives who collectively have over 80 years of experience in the plastics recycling industry. Mr. Rung was a Partner at Oliver Wyman, where he developed growth strategies and implemented integration programs for clients across Europe and emerging markets. The Repeats executive team has successfully built, scaled, and monetized plastic recycling businesses across Western Europe. The team is well versed in the different mechanical and chemical technologies at the forefront of LDPE recycling, and they have strong relationships with European plastic collection agencies, converters and consumer product companies driving growth in the recycled LDPE resin market.
"The need for an effective, circular solution to the growing plastic waste problem is tremendous, and European businesses, consumers and governments are aligned in working towards higher utilization of recycled plastic. We seek to partner with leading CPG, petrochemical and plastic packaging manufacturing companies to create a high-quality supply source that is widely available throughout Europe. We are proud to partner with Ara, which shares this ambition and has expertise and resources to help achieve our objectives."
Greg Rung, Repeats' CEO
"The Repeats management team has the operational experience, strategic relationships, and drive to transform the European LDPE recycling market," said Tuan Tran, a Partner at Ara Partners. "They have an outstanding reputation in Europe and we are thrilled to partner with the Repeats team to build a pan-European recycling leader."
"Repeats has the opportunity to facilitate a material reduction in green house gas emissions through replacement of virgin plastic resin with recycled LDPE from its facilities," said Katy Boettcher, a Vice President at Ara Partners. "We believe that the platform will have a meaningful impact on the markets it serves."
About Ara Partners
Ara Partners is a private equity firm specializing in industrial decarbonization investments. Ara Partners invests in the industrial & manufacturing, chemicals & materials, energy efficiency & green fuels and food & agriculture sectors, seeking to build businesses that provide significant decarbonization impact. It operates from offices in Boston, Massachusetts, Houston, Texas and Dublin, Ireland. Ara Partners closed its second fund with approximately $1.1 billion in capital commitments in September 2021.
Based in the Netherlands, Repeats — Recycled PE AT Scale — is a pan-European plastics recycling platform transforming polyethylene (PE) plastic waste into resin suitable for a variety of commercial and industrial flexible plastic applications.
KBR | August 04, 2021
KBR announced today that it has signed a technology contract for a sustainable textile fibers demonstration plant to be built by TreeToTextile AB in Nymölla, Sweden.KBR will provide technology license, engineering, proprietary equipment, and commissioning services for the chemicals recovery unit of the project, which will enable TreeToTextile to efficiently and sustainably reuse valuable chemicals through KBR Ecoplanning® innovative solutions.
"We are honored to support this exciting project by TreeToTextile for producing a highly sustainable low-cost textile fiber using renewable forest materials," said Doug Kelly, KBR President, Technology. "KBR is committed to expanding its sustainable technologies portfolio to help our clients balance their business and ESG objectives."KBR Ecoplanning has over 50 years of experience in state-of-the-art design and supply of evaporation and crystallization technologies and has supplied over 200 plants globally across diverse applications and industry segments, including fertilizers, metallurgical, pulp and paper, chemicals, food, and others.
We deliver science, technology and engineering solutions to governments and companies around the world. KBR employs approximately 29,000 people worldwide with customers in more than 80 countries and operations in 40 countries.KBR is proud to work with its customers across the globe to provide technology, value-added services, and long- term operations and maintenance services to ensure consistent delivery with predictable results.
Axalta | July 08, 2021
Axalta Coating Systems, a leading global supplier of liquid and powder coatings, announced today that it has entered into definitive agreements to acquire U-POL Holdings Limited from Graphite Capital Management LLP and other holders for £428 million (approximately $590 million), subject to certain adjustments stated in the transaction's Sale and Purchase Agreements.
U-POL, located in the United Kingdom, was founded in 1948 and is a leading manufacturer of repair and refinish products used mainly for automotive refinish and aftermarket protective applications. The company manufactures a wide variety of high-quality automotive refinishing goods and accessories, such as fillers, coatings, aerosols, adhesives, and paint-related products, as well as other automotive aftermarket protective coatings. U-POL distributes its products in over 100 countries and is well-known for its top brands, such as Raptor, Dolphin, and Gold. Axalta will accelerate the expansion of U-products POL's by increasing market access via Axalta's current sales and distribution channels while using U-distribution POL's networks to reach new clients with its Refinish Coatings portfolio.
U-POL's talented global organization and its production facility and R&D lab in Wellingborough, England, bring huge capabilities to the company's commercial, manufacturing, and technology organizations, improving Axalta's capacity to serve customers worldwide.
For the fiscal year 2021, U-POL expects net sales of about $145 million and adjusted EBITDA of around $38 million. Axalta expects substantial operational and commercial benefits throughout the merged global businesses. Annual operating savings and efficiency of about $10 million are anticipated to be fully achieved within 18 to 24 months after the transaction's completion. The entire consideration of approximately $590 million reflects an adjusted EBITDA multiple of about 12.5x for the full year 2021E, including run-rate operating synergies and efficiencies. Furthermore, the identified commercial efficiencies are expected to provide significant value over time. As a result, Axalta expects that the acquisition will be immediately accretive to adjusted EBITDA margin, excluding transaction-related costs. Axalta intends to fund the acquisition using cash on hand.
About Graphite Capital
Graphite is a specialized provider of private equity financing to UK-based mid-market companies. Graphite invests in both management buyouts and development capital opportunities.
About Axalta Coating Systems
Axalta is a global coating industry leader, offering clients innovative, colorful, beautiful, and long-lasting coating solutions. Our coatings are intended to prevent corrosion, improve productivity, and enhance durability in a wide range of applications, including light vehicles, commercial vehicles, and refinish applications, as well as electric motors, building facades, and other industrial uses. With over 150 years of expertise in the coatings industry, Axalta's global team is always looking for new ways to provide the best coatings, application systems, and technology to our more than 100,000 clients in over 130 countries.