“Today, a lot of plastics and other forms of waste end up in nature, landfills and incinerators, with far-reaching environmental implications,” said Robert Uggla, chief executive of A.P. Moller Holding. “We would like to contribute to the critical societal development of a circular system of waste, with the same material being used and re-used in an endless number of manufacturing cycles.”
Corporate financier Nicholas Mockett from UK-based Moorgate Capital, said that the deal should demonstrate to the financial and investment community that attractive returns can be made in the plastics packaging industry, particularly with a strong management team and board of directors.
“Advent’s stewardship of Faerch represents a fairly short holding period for a private equity house, which typically invest for 3-7 years,” commented Mockett. “Advent (which bought the business from EQT Private Equity) agreed the acquisition of Faerch at the start of June 2017. Advent was reported to have paid around €1bn ($1.2bn) and subsequently made a number of acquisitions.
“Following relentless media discrediting of the industry this is heartening news for those operating in the plastics packaging sector, showing that a return on investment can still be realised. The plastics packaging industry overall has been extolling of the merits of reduce, reuse, and recycle for decades and will no doubt continue to champion the circular economy along with Faerch.”
