CMS has advised private equity fund Value4Capital on the acquisition by its V4C Poland Plus Fund of waste management firm Kom-Eko S.A. from Royalton Partners. Allen & Overy Warsaw advised the sellers, Royalton Partners’ Royalton Capital Investors II.
Value4Capital (V4C) was supported in the acquisition by co-investments from some of the fund’s investors, including the European Investment Bank Group. Alpha Associates also committed to the transaction through its fund-of-funds Alpha CEE Opportunity IV, LP., and mBank S.A. provided an acquisition facility to complement the equity commitments. Transaction terms were not disclosed.
Kom-Eko is a waste management company in the Lublin area of Poland, with activities including municipal and commercial waste collection, sorting and processing centers and landfills in Lublin and Krasnik.
According to A&O, the EIB Group’s financing will also support Kom-Eko’s investments into new waste sorting technology in order to increase the dry waste recycling levels as required by the municipalities in order to fulfill higher required recycling ratios set by the EU regulators.
Piotr Misztal, partner at V4C and transaction leader, commented: “Kom-Eko is a perfect match to the fund’s strategy […], where we can team up with management to take the business to the next level. We will actively look at consolidation opportunities to strengthen the footprint of the business in Poland while seeking to enhance current operations. We expect Kom-Eko to continue to focus on increasing the amount of waste it is able to sort and recycle, reducing landfilling and helping its clients meet their objectives of better management and valorization of waste.”
The CMS team was coordinated by Partner Marek Sawicki and included Partner Marcin Bejm, Counsels Agnieszka Skorupinska and Jakub Wieczorek, Lawyers Piotr Galazka, Jakub Przybylek, and Karol Jaworecki, Senior Associates Grzegorz Paczek and Malgorzata Sajkiewicz, and Associate Joanna Bialoskorska. The CMS team in Luxembourg advised on Luxembourg law.
The A&O team was led by Partner Jaroslaw Iwanicki, supported by Senior Associate Tomasz Ciecwierz and Associate Joanna Kaleta.