The demand for recycled plastics is increasing rapidly worldwide: consumer awareness is growing, companies are setting themselves ever more ambitious sustainability targets and recycling requirements from international governments are also increasing. As a company with almost 30 years of experience in plastics processing and almost 25 years in the field of recycling, Krones has now taken the pioneering decision to pool its recycling expertise in the independent subsidiary Krones Recycling GmbH from July 2024.

A logical step, as Krones CEO Christoph Klenk explains: “The spin-off will enable Krones Recycling to develop faster and in line with market requirements. Because in line with our claim Solutions beyond tomorrow, this division makes a decisive contribution to protecting the environment by returning plastic waste to the value-added cycle.”

More flexibility, familiar all-in-one service

In addition, thanks to leaner processes and structures, the new company will be able to respond more quickly to changes in the constantly changing recycling market, says Michael Gotsche, Managing Director of Krones Recycling GmbH: “The newly founded company offers us the necessary flexibility and scope for action to be able to implement decisions in a customer-oriented, fast and optimised manner.”

For all its independence, however, the name Krones Recycling not only symbolises the focus on plant en-gineering in the field of recycling, it also reflects the close connection to the Krones Group. “We know that our clients appreciate Krones’ overall line expertise, which means they get everything from a single source. They can continue to rely on this in the future. The worldwide sales and service network is also available to us without restriction,” Gotsche continues.

Ambitious goals

A large number of plastics such as PET, PE, PP and PS are already being processed on Krones Recycling’s lines worldwide. “Our vision is to make a daily contribution to a global circular economy for all plastics by offering our customers sustainable and profitable recycling solutions,” says Michael Gotsche, describing the overarching business objective. There is also a clear marker in relation to Krones’ sustainability targets: at least 30 per cent of the plastics processed on Krones lines are to be returned to the cycle as a recycled resource.

Consequently, Krones Recycling will continue to conduct intensive research into new innovations at its in-house Recycling Technology Centre. There, tests on the recyclability of various plastics, including adhesives and colours, can also be carried out under real conditions on behalf of customers.

Investment to grow critical infrastructure of leading global beverage solutions provider

Refresco Group B.V., one of the largest independent beverage contract manufacturers in the world, and KKR, a leading global investment firm, announced that KKR has signed a definitive agreement to acquire a majority stake in Refresco, with Refresco’s existing investors, PAI Partners and British Columbia Investment Management Corporation (“BCI”), maintaining a significant minority position. Terms of the transaction, which is subject to closing conditions, were not disclosed.

Founded in 1999, Refresco is a global independent beverage solutions provider for retailers and branded beverage companies with pan-regional coverage in Europe and North America through its network of bottling, warehousing, logistics and other operational assets. The Company’s production platform includes over 70 majority-owned manufacturing sites in Europe, the U.S., Canada and Mexico, providing customers with close proximity and a reliable service across geographies. Refresco has built long-standing relationships with its customers by partnering to support material planning, procurement, manufacturing, warehousing, fulfillment, and distribution.

KKR will support Refresco as it expands its global and strategically located footprint to better serve existing and new customers through a range of formats and channels. The Company will build on its ability to manufacture high quality products that meet the growing demand for sustainable beverage solutions, with a focus on sustainable sourcing, responsible production and environmentally friendly operations.

“We are very pleased to welcome KKR, one of the world’s most prominent investment firms, as our new majority owner. We are proud that PAI and BCI will continue as shareholders, which is a testament to our successful value creation,” said Hans Roelofs, CEO of Refresco. “To support further growth, we have explored the various alternatives available to us and believe that the investment by KKR is an incredibly positive development for the Company. Like our existing shareholders, KKR is supportive of our strategy and will bring operational expertise, access to capital and a well-established network to support us in our growth, innovation and M&A strategy. Our focus of growing alongside our customers, combined with expanding into new categories and geographies, remains unchanged. I look forward to this new chapter, and for all our employees and customers to capitalize on the opportunities ahead of us.”

“Refresco has established itself as an industry leader supporting the global beverage industry with a blue-chip global customer base, an experienced and highly regarded management team, and an impressive network of assets that provides compelling value to customers. The Company also has a strong commitment to sustainability, which is an important differentiator for its customers,” said James Cunningham, Partner at KKR. “We look forward to leveraging our operational expertise from across the KKR platform to support the Company’s continued growth and further advance the sustainability of its value chain.”

“We are proud to have been instrumental in Refresco’s growth since we initiated our investment with BCI in 2018,” said Frédéric Stévenin, Managing Partner of PAI Partners. “We are even more excited about the prospect of continuing to stay a part of Refresco’s strong growth trajectory alongside KKR. We are convinced of Refresco’s unique value-add capabilities, its growth initiatives and a proven M&A track record, and we look forward to the next phase of this journey.”

“As an institutional investor with a long-term perspective, supporting strong management teams and market leading companies is core to our private equity program. We are in full agreement with Frédéric’s comments and are very happy to continue this partnership with management, PAI and KKR,” said Julian Remedios, Senior Managing Director, Private Equity, BCI.

KKR is making this investment primarily through its Global Infrastructure strategy, which was established in 2008. Since that time, KKR has been one of the most active infrastructure investors around the world with a team of more than 70 dedicated investment professionals. The firm currently oversees approximately $ 40 billion in infrastructure assets and has made over 60 infrastructure investments across a range of sub-sectors and geographies.

About KKR
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries.