RGS 90’s core business is recycling of building materials and soil treatment and it is one of the industry leaders within the sector in Denmark. In addition, RGS 90 has built an industrial process for recycling of wastewater sludge into a sandblasting agent marketed under the name Carbogrit.
“RGS 90’s core business has developed very well during our investment period, but at the same time the investment in the Carbogrit plant has failed,” says CapMan Partner Anders Björkell, who has been a Board member of RGS 90 since October 2005. “During the past year, I have closely followed how hard the new management team for the Carbogrit business has worked to solve the problems that the company has had in the start-up phase of the plant. They have also succeeded in stabilising the operations and the quality of the end product is now good. Unfortunately the plant’s profitability is still lagging behind expectations, and together with the higher than budgeted plant investment this has made our investment in RGS90 unsuccessful as a whole,” continues Björkell.
”Thanks to the sound core business we believe, however, in the company’s good growth opportunities in future. We have gone through different alternatives for the development of the company together with RGS 90’s majority owner and financiers, and the sale of RGS 90 to DSV Miljø A/S creates a very strong industrial player in the sector,” states Björkell.
CapMan funds CapMan Equity VII and Finnventure V invested in RGS 90 in summer 2002, and the funds’ combined holding in the company was approx. 42% prior to the realisation. During the last few years the fair value of the RGS 90 investment has been written down in stages reflecting the company’s development. Therefore the exit does not have a substantial impact on CapMan Plc’s result for 2006, although CapMan Plc is a substantial investor in CapMan Equity VII fund.
For further information, please contact:
Anders Björkell, Partner, CapMan Buyout, tel. +358 9 6155 8302 or +358 40 537 7566
Heikki Westerlund, CEO, CapMan Plc, tel. +358 9 6155 8304 or +358 50 559 6580
CAPMAN PLC
Jerome Bouix
Partner
Fundraising, IR and Communications
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Helsinki Exchanges
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