Romplast PE-Regenerat GmbH
Reference project in the recycling sector
Sell-side distressed M&A
EUR < 5 million
Plastics recycling
Baseline
Romplast PE-Regenerat GmbH based in Maintal, Hesse, produces plastic regranulates from used polyethylene foil which is used to make rubbish sacks, tote bags and plastic foils and films for the construction and agricultural sectors. An established company with a highly efficient production process, long-standing customer base, a large suite of technological competencies and the necessary official approvals. The application for insolvency proceedings was lodged in February 2021 in the wake of the parent company drawing on the guarantees issued in its favor when it became insolvent.
Challenge
Developing an attractive investment story to realize an attractive price in light of the preliminary insolvency proceedings was extremely challenging. A competitive transaction process that was aligned towards an international audience was initiated and completed within an extremely short period of just 7 weeks from the engagement being awarded through to signing the deal. In addition, the buyer’s lack of experience with corporate transactions required very close support.
Solution
It proved possible to obtain an attractive price, making a significant contribution to the available insolvency assets. The international competitive transaction process culminated in the generation of three contracts ready for signing. Job security for the entire workforce and the strategic expansion of the location by increasing its depth of production were finally secured by Karl Bachl, a family-owned company.