BEWI leads the change towards a circular industry through the acquisition of the recycling company Berga Recycling10-06-2022
BEWI leads the change towards a circular industry through the acquisition of the recycling company Berga Recycling
BEWI ASA, a leading provider of packaging, components, and insulation solutions, today announces that the company acquires Berga Recycling Inc., a world leader in the purchase and sale of materials for recycling.
“Through our acquisition of Berga, we continue to lead our industry’s change towards a circular economy. We are super excited about the opportunities Berga’s platform provides us with, enabling us to challenge existing business models and structure the supply chain for materials for recycling,” says CEO of BEWI, Christian Bekken.
Berga’s vision is to become the world’s largest agency for materials for recycling. In 2021, the company purchased and sold an annual volume of approximately 82,000 tonnes of materials for recycling through a network of hundreds of customers globally. The trading is completed through an online trading platform, which is linked to Berga’s comprehensive network of logistic partners. Through the system, customers can track the delivery of the material, enabling improved planning throughout the value chain and securing a seamless process from the completion of the transaction to the delivery of the material.
“The markets for handling waste and used materials are very fragmented. Through Berga’s online trading platform, where the concept is to purchase materials for recycling from the companies that generate them and sell to those who transform them, we get an excellent tool to further consolidate and grow our circular business. The platform is scalable, and therefore easily applicable to other recycling companies in our portfolio,” Bekken continues.
For 2021, Berga had sales revenues of approximately CAD 43 million (approximately EUR 31.0 million), with an EBITDA margin of approximately 10 per cent. The company has shown a sustained profitable growth of more than 20 per cent the last three years.
The consideration for 100 per cent of the shares of Berga Recycling Inc. will be settled in cash. The consideration is just above BEWI’s historical M&A range of an EV/ EBITDA multiple of 5 to 7.
«I am seldom seen this excited about any transaction, but the strategic importance of this acquisition for our circular business is beyond any previous acquisitions or initiatives we have done. From the establishment of our circular business in 2018, we will now, including Berga, have an annual turnover of approximately EUR 64 million with an EBITDA margin of close to 10 per cent. Not only have we managed to build a sizeable and profitable circular business, with an annual collection rate of EPS waste of approximately 35,000 tonnes but I am truly proud that we are about to really make a difference by creating a circular system for waste streams,” Bekken concludes.
BEWI will host a short presentation and Q&A session about the acquisition of Berga, including its Circular business, on Monday 13 June 2022 at 13:00 CEST.
Details about how to participate in the Q&A session will be made available on the company’s website, www.bewi.com prior to the meeting.
For further information, please contact:
Charlotte Knudsen, Director of IR and Communications BEWI ASA, tel: +47 9756 1959
Marie Danielsson, CFO BEWI ASA, tel: +46 70 661 00 47
About BEWI ASA
BEWI is an international provider of packaging, components, and insulation solutions. The company’s commitment to sustainability is integrated throughout the value chain, from production of raw materials and end goods, to recycling of used products. With a vision to protect people and goods for a better every day, BEWI is leading the change towards a circular economy.
BEWI ASA is listed at the Oslo Børs under ticker BEWI.
The information is such that BEWI ASA is required to disclose in accordance with the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act. The information was submitted for publication, through the agency of the contact persons set out above, at 14:00 CEST on 10 June 2022.