Novago
Country: Poland
Region: Mazowieckie
Investors: Abris Capital Partners
Abris invested in Novago, Poland's largest municipal waste management company, in 2013. At that time, the company’s core business activities included municipal waste treatment, the production of alternative fuel, landfill and production of energy from biogas.
During the course of its investment Abris helped the company extend its geographical presence, invest in new waste processing facilities, develop a new business strategy and eventually become a fully integrated Waste-to-Energy group.
The sale of Novago by Abris to China Everbright International in 2016 was a ground-breaking transaction, as it represented the largest single Chinese investment made in Poland to date, and the largest acquisition in the environmental treatment industry in Central & Eastern Europe.
Michał Dąbrowski
Vice-President of the Management Board - Novago
'Abris’ strong support and strategic input helped us gain new heights and, as a result, Novago became stronger in every aspect.
47%
CAGR of processing volume between 2012-2016
50%
CAGR of Ebitda between 2012-2016
What did the business need?
Diversification of revenues from a single source at entry
Professionalisation of management
Creation of new business strategy
How did private equity backing create lasting value?
Completed investment program allowing to secure a strategic position on the changing waste management market
Developed cost-effective, proprietary technology for waste processing and fuel production
Re-focused group strategy: built a fully integrated Waste-to-Energy group
Built a landfill bank capable of providing the company with 100-year capacity at current production levels, all prepared to new EU standards
Created new development options through additional funding from Abris and EU grants
Introduced new corporate standards and brought in new COO & CFO
Executed bolt-on acquisitions to build scale and geographic footprint
What outcomes did private equity investment achieve?
Expanded geographical reach: from two locations to six, in four Polish provinces
Achieved CAGR in Ebitda of 50% and volumes of 47%
Quadrupled processed volumes
Achieved revenue diversification – managed to diversify its revenues from single source, to: gate fee, alternative fuel sales, electricity and energy sales, services at Exit.
Expanded employee numbers to more than 400 from 150 at entry
Increased market share more than fourfold in Poland
Launched multiple ESG and CSR initiatives in local community
Investors
