Private equity challenge - Kompuestos as an investment opportunity in the plastic sector

Abstract

The project explores the opportunity to invest in Kompuestos, a Spain-based listed company, dedicated to produce and commercialize Masterbatches and other plastics compounds, within the plastic industry. The company recently made a smart shift towards sustainability, changing the paradigm and the bad publicity of plastics, aiming to adapt its business to meet current concerns. The investment yields a 3.3x money multiple. The plastic industry is essential to our society, representing a market expected to grow at a 4.2% CAGR, reaching a market value of approximately $754b by 2027, being partially explained by the increase in demand for bioplastics. Kompuestos is a well-established firm, generating € 46.2m in revenue and an EBITDA of € 3.3m, as of 2019.