Today investors all over the world hesitate to undertake new investment projects due to the poor financial climate. But the Scandinavian private equity group CapMan defies the trend and has just invested DKK 250 mill. in the Danish raw materials and recycling company RGS90. The investment is the largest equity investment CapMan has undertaken in Scandinavia so far and it gives CapMan a 40% share of the stocks in RGS90. RGS90 is among the leading providers of industrial waste management in Denmark. The leading European countries for recycling of construction and demolition waste are Denmark and Holland.
– RGS90 has been tremendously successful since the founding in 1990 and holds a strong position in Denmark. Furthermore, RGS90 has a growth strategy that fits perfectly with our competences and portfolio, says CEO Ari Tolppanen, CapMan Plc.
Leif Jensen, managing director of CapMan Invest A/S, specifically underlines the new environmental demands from the EU as a valuable opportunity for RGS90:
– In the latest statement on environmental development the EU has proposed that recycling and depositing of industrial waste is going to be a key focus area. With RGS90’s current research and level of knowledge the company is in a good position to play a decisive role in the development and implementation of new methods and facilities. So the timing for a major investment seemed perfect.
RGS90 provides industrial waste management including treatment and depositing of soil, delivery of recycled materials, environmental consulting and decentralized treatment of waste material. Annual turnover is app. DKK 550 mill. The company is organized in three divisions and employs app. 250 people. RGS90’s strategy is to replace regular raw materials with high-quality recycled products. The new capital from CapMan enables RGS90 to establish a new carbogrit-facility that converts waste materials from water treatment plants into abrasives used for sandblasting. RGS90 also plans to establish a new facility for the recycling of PVC. Both projects represent new unique technology development within waste management.
– CapMan fulfils our need for an investor with a strong network in the Nordics that is able to support our Nordic growth strategy. First and foremost CapMan has a range of financial competences that we can take advantage of but they also possess the kind of insight that is necessary to play an active role on the board of directors, says Niels Jørn Hahn, chairman of the board of RGS90 and managing director in major shareholder R98.
