Pareto Securities advises APK AG on strategic partnership with LyondellBasell and KIRKBI

Frankfurt, February 9, 2023. APK AG and its shareholders, together with LyondellBasell Industries Holdings NV ("LyondellBasell"), one of the world’s largest plastics, chemicals and refining companies and KIRKBI A/S ("KIRKBI"), the family-owned holding and investment company of the LEGO® brand, announce the signing of a strategic partnership. Under the terms of the partnership, the parties have agreed to invest equity capital of EUR 130 million in APK. The objective of this agreement is to establish APK's Newcycling® technology, developed and patented for the recycling of multi-layer flexible packaging materials, in the market. Pareto Securities acted as financial advisor in the transaction and is also advising APK on project financing in the context of the expansion of the Newcycling® facilities.

APK specialises in the production of high-quality plastic granulates and compounds from pre- and post-consumer plastic waste. Through innovative technologies and a unique and patented recycling process, APK therefore makes a valuable contribution to reducing CO₂ emissions and thus to a more sustainable environment in the long term. Since June 2022, APK AG has been operating a state-of-the-art research and development centre near Frankfurt to further develop its recycling technology. APK was founded in 2008 and currently employs around 220 people.

Gero Wendenburg, Head Investment Banking at Pareto Securities, comments: "This is an important milestone in dealing with one of the biggest problems facing our planet and creating a true circular economy for plastics. Only a very small proportion of the world's plastic waste is recycled today, and even less in a closed -loop process. The growing demand for high quality recycled products and the increasing support from regulations for a sustainable circular economy, promote new environmental and economic processes of recycling. The investment in APK's unique know-how by renowned companies in the industry therefore represents a significant turning point. We are pleased that our extensive expertise and years of experience, particularly in the areas of GreenTech and Advanced Recycling, have enabled us to bring the strategic partnership to a successful outcome for all parties."

Pareto Securities has acted as financial advisor in relation to 10 transactions in the advanced recycling industry in Europe over the past three years.

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Founded in 1986, Pareto Securities is headquartered in Norway and has offices in Denmark, Finland, Sweden, Germany, the UK, Switzerland, the US, Singapore, and Australia. Pareto Securities has a leading position in the Nordic financial markets and a strong international presence. Pareto Securities offers a wide range of financial services, including equity and fixed income brokerage, equity, debt and project finance, and advisory services related to mergers and acquisitions and restructuring.