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.