Enterprise Investors’ Venture Fund to invest €7 milion in Elemental Holding

The group intends to use the additional equity for further acquisitions that it is negotiating as part of its consolidation of the Polish scrap-collection market, as well as for capex investments in scrap and recycling businesses.

Elemental Holding is the largest and the fastest-growing collector and processor of metals from secondary sources in Poland. The company has been consolidating the non-ferrous scrap metal market in the country and expanding its operations into the growing electro-waste recycling market since its inception in 2009. In the past year the group completed the acquisition of Syntom, a Polish recycler of non-ferrous metals. Last February it signed an agreement to purchase Terra Recycling, which operates one of the most modern plants in Poland for processing electrical as well as electronic waste and offers comprehensive recycling of household appliances, consumer electronics and IT equipment.

Elemental Holding’s main source of revenue, which in 2012 amounted to €215 million, is the trading of recyclable materials, particularly non-ferrous metals, including their segregation and basic processing. The group also operates on the fast developing market of electro-waste recycling, which involves the recovery of metals from used electrical and electronic equipment. Since 2012 the company has been listed on New Connect, an alternative market of the Warsaw Stock Exchange.

The group’s aim is to continue its focus on organic growth and on increasing its share of the Polish and global non-ferrous metals recycling sector. Currently, in addition to its domestic activity, Elemental is also present on foreign markets, including rapidly developing Asian countries.

“This latest investment by Enterprise Venture Fund confirms our strategy of supporting businesses led by management teams that have a well-defined plan for further development and that operate in promising sectors of the economy. EU law will require member states to collect at least 85% of electro-waste starting in 2016. In Poland, this means increasing current volumes threefold, which creates tremendous opportunities for well-prepared companies operating in the market of recovery of electrical and electronic waste. We are in no doubt that the companies forming the Elemental group can meet this challenge,” commented Rafał Bator, Partner of Enterprise Investors.

“The dynamic development of the domestic market for recycling and sale of recyclable materials gives Elemental Holding the opportunity to implement an ambitious development strategy in Poland and abroad. We intend to make further acquisitions and to build a large, prospering capital group. I am confident that Enterprise Venture Fund will help us achieve our expansion goals in Poland and the CEE. At the same time we are very pleased that Elemental Holding’s robust position on the capital market is reflected in the growing value of its shares,” said Paweł Jarski, CEO of Elemental Holding.

Enterprise Investors is one of the largest private equity and venture capital firms in Poland and Central and Eastern Europe. Active since 1990, the firm manages funds with capital exceeding €2 billion. These funds have invested €1.6 billion in 130 companies across a range of sectors and exited 97 companies.

Enterprise Venture Fund I is an EI-managed venture capital fund raised in 2008 with total capital of €100 million. Its investments typically range from €1 million to €5 million per project, but can exceed that amount. The fund finances the expansion of small and medium-sized enterprises operating in a range of sectors. To date, EVF has realized 13 investments in companies operating in Poland and the CEE.

For further information, please contact:

Enterprise Investors
Rafał Bator
Partner
tel. (+48 22) 458 85 00

Aleksander Wasiukiewicz
Investment Director
tel. (+48 22) 458 85 00