Livingstone’s Distressed M&A team is pleased to announce the successful sale of KWP Recycling GmbH and Bracke Umweltservice GmbH to a strategic investor. Livingstone was mandated early in January to initiate a structured M&A process with the aim of identifying a strategic or financial investor.
KWP and Bracke are both based in Essen and have a 30 year history in paper and plastic recycling. KWP Recycling has developed a very efficient recycling process for hard mixed plastics. The multi-stage recycling process focuses on the refining of polyethylene (PE) and polypropylene (PP) as well as other plastic waste (e.g. PS, ABS, PC and PVC).
KWP and Bracke’s customer base includes national and international manufacturers of plastic products (such as pipes, profiles, crates, buckets, pots and water tanks) as well as automotive suppliers. In 2016 the companies generated sales of approximately EUR 5 million and employ 20 people. By December 27th, 2016 KWP Recycling GmbH, and by January 20th, 2017 Bracke Umweltservice GmbH filed for insolvency proceedings. With the approval of the preliminary insolvency administrator Michael Wölte, Wölte & Kischko Rechtsanwälte, the strategic investor was chosen following a competitive process run by Livingstone, that generated considerable interest from a number of leading national and international investors.
Michael Wölte, insolvency administrator, said: “Within just four and a half month and after intensive negotiations the parties have found a sustainable solution for the employees and the company.”
Dr. André Schröer, Partner at Livingstone, commented: “We are very pleased that we could find a strong partner who has not only taken over the workforce, but also wants to continue developing the company in the long term.”