Big and Green: Kom-Eko's formula for modern waste management

Company	Kom-Eko S.A.
PE/VC investor	Value4Capital
Investment period	2018-2022

9

Investment

(in Millions)

5

Return

Cash-on-Cash, 50% IRR

2.2

Sales growth

3

EBITDA growth

Poland's waste management industry is undergoing a significant transformation, influenced by stringent EU regulations and a heightened ecological awareness. Within this evolving landscape, Kom-Eko positioned itself as a modern, integrated provider of waste management services to address the varied needs of its municipal and commercial clients. Recognizing the company's potential to grow as the circular economy generated more opportunity, V4C invested in Kom-Eko in 2018, drawn by Kom-Eko's solid regional footprint, stable revenue base, cash flows, and dynamic management team.

Under V4C's stewardship, Kom-Eko charted a path of solid growth. The company expanded its market share, capturing new regions and waste segments. Capacity expansion and increasing processing sophistication became central tenets of Kom-Eko's strategy. The company invested over €40m between 2018-2022 to build innovative sorting facilities and execute strategic acquisitions. A 30% revenue CAGR between 2018-2021 and an industry-topping EBITDA margin towards the end of V4C's holding showcased management's operational acumen.

V4C exited Kom-Eko through a sale to another PE fund, achieving a 5.0x CoC and 50% IRR.

Main objectives
of funding

Ownership transition from the prior private equity owner to V4C, ensuring continued strategic guidance and focus on operational excellence.
Solidifying regional leadership by expansion of Kom-Eko's regional footprint.
Strategic expansion into new areas of waste processing.
Increasing contribution to the circular economy with various investment initiatives aiming to improve recycling rates.

What changed in the company after PE/VC investment

Capacity development. Kom-Eko acquired and redeveloped a new site in a suitable industrial location adjacent to its core processing facilities to increase sorting capacity for dry and bulky waste and to relocate its truck depot and headquarters. Kom-Eko modernized and expanded the power of its processing lines and initiated projects to build local waste-to-energy installations to secure offtake of refuse-derived fuel and contribute to the circular economy.
Consolidation & services expansion. Under V4C's oversight, Kom-Eko acquired a provider of industrial waste management services, LAOŚ. The acquisition allowed Kom-Eko to enter the industrial waste segment and realize cost synergies. The acquisition also provided Kom-Eko with a third location for its operations, securing room for further expansion. In 2022, Kom-Eko acquired the largest asbestos landfilling site in Europe. This acquisition secured the capacity for depositing asbestos disassembled from regional housing for over 20 years.

ESG related initiatives and accomplishments

Infrastructure

Developed state-of-the-art infrastructure targeting an 88% waste recovery rate.

Employee Welfare

Continuous training and preventive measures significantly reduced accident rates, solidifying a safe work environment.

Community Engagement

Proactively supported local communities, sponsoring ecological and educational initiatives, underscoring Kom-Eko's commitment to social responsibility.

Consolidation & Expansion

Acquired Europe's largest asbestos landfilling site, ensuring safe and environmentally responsible disposal.

Reporting

Kom-Eko created a sustainability reporting framework implemented in the company and reinforced monitoring and reporting of ESG matters related to environmental impact, corporate governance, employee matters, and broader stakeholder impact.

With V4C's support and our team's dedication, Kom-Eko bolstered capacities and its ESG commitment, positioning us for the next growth phase and meeting the industry's evolving challenges.

Marcin Benbenek

CEO of Kom-Eko