H.I.G. Capital Actualité

Contact:

Dr. Holger Kleingarn
Managing Director
hkleingarn@higcapital.com

H.I.G. European Capital Partners GmbH
Warburgstrasse 50
20354 Hamburg
Germany
T: +49 40 41 33 06 100
www.higcapital.com

H.I.G. Capital Completes the Sale of Der Grüne Punkt

HAMBURG – August 11, 2022 – H.I.G. Capital (“H.I.G.”), a leading global alternative investment firm with over $50 billion of equity capital under management, is pleased to announce that one of its affiliates has completed the sale of Der Grüne Punkt – Duales System Deutschland (“DSD” or “the Company”) to Circular Resources, which provides a comprehensive offering for global corporations to meet their need for recycled plastics. Its combination with DSD will create a large-scale provider of solutions for the circular economy in Europe with a secured, stable and high-quality inflow of raw materials for recycling.

Der Grüne Punkt was founded in 1990 as Germany’s first dual system to provide nationwide collection of used sales packages in a transparent and cost-efficient way beneficial for the consumer. Over time, DSD has developed its own recycling activities and has become an integral part of the overall value chain in the circular economy. Der Grüne Punkt is one of Germany’s best-known and most trusted consumer brands.

Under H.I.G.’s shareholding, DSD has established itself as a market leader in the German circular economy. The Company has professionalized its licensing business and actively contributed to the development of a sustainable regulatory framework in Germany to handle packaging waste with high compliance levels. Additionally, H.I.G. and DSD made strategic investments into dedicated plastic recycling facilities in Germany. Today, DSD and its renowned Systalen brand are widely considered as pioneers in the plastics recycling industry. Recently, DSD has entered into various strategic partnerships in the waste management value chain, including waste sorting.

Dr. Holger Kleingarn, Managing Director at H.I.G., said: “We are very pleased to have developed Der Grüne Punkt into an integrated business leading in packaging licensing and recycling alike. For many years, DSD has been spearheading Germany’s development into a circular, sustainable economy and will accelerate this trajectory together with its new owner Circular Resources. We thank DSD’s CEO Michael Wiener and his management team for our highly trustful and effective partnership and wish them the same success for the next phase of development. Our investment in DSD underlines H.I.G.’s expertise in positioning companies for growth in key future sectors.”

Michael Wiener, CEO of DSD, said: “Our highly successful partnership with H.I.G., based on a strong level of mutual trust and commitment, has been very rewarding. Supported by H.I.G., DSD has been the first dual system in Germany which successfully implemented a verticalization strategy by running a nationwide waste licensing system and operating several plastic recycling plants in parallel. Today, DSD is the market leader in mechanical recycling and produces highest grade recyclates. Our growth momentum will be further strengthened by now adding chemical recycling to our offering. Together with our new owner Circular Resources we will provide our customers a one-stop-shop solution.”

About der Grüne Punkt – competence in packaging licensing and mechanical recycling
Der Grüne Punkt set up the dual system in Germany 1991 and is now one of the leading system operators in a market characterized by a high level of compliance and reliability. With its two recycling plants, DSD currently produces around 50,000 tons of high-quality plastic recyclate annually, stemming from household, construction, and garden waste. Additionally, DSD consults its blue-chip customers on the recycling-friendly design of packaging.

About H.I.G. Capital
H.I.G. is a leading global alternative assets investment firm with over $50 billion of equity capital under management.* Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro and São Paulo, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/value-added approach:

  1. H.I.G.’s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
  2. H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. is also a leading CLO manager, through its WhiteHorse family of vehicles, and manages a publicly traded BDC, WhiteHorse Finance.
  3. H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices.
  4. H.I.G. Infrastructure focuses on making value-add and core plus investments in the infrastructure sector.

Since its founding in 1993, H.I.G. has invested in and managed more than 300 companies worldwide. The firm's current portfolio includes more than 100 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.

* Based on total capital commitments managed by H.I.G. Capital and affiliates.