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

Abstract

This Private Equity project studies the benefits for a private equity firm on acquiring Kompuestos, a producer of masterbatches and other plastic compounds, focused on adapting its business to meet the current environmental concerns. Such premise, aligned with the underlying opportunities inherent to an overall shift from society towards sustainable practices comprises an interesting investment opportunity yielding a 3.3x money multiple. The importance of plastics is undeniable, and its industry is expected to grow 4.2% annually until 2027, reaching a market value of approximately $ 754bn by 2027.Kompuestos is a well-established firm within the European plastic compounds market, generating € 46.2m in revenue and an EBITDA of € 3.3m in 2019.