Investment highlights

Company Profile 
Cabka is in the business of recycling plastics from post-consumer and post-industrial waste into innovative reusable pallets and large container solutions enhancing the sustainability of logistic value chains. Cabka is leading the industry with its integrated approach of fully closing the loop - from waste, to recycling, and finally, manufacturing. Backed by its own innovation center it combines unique industry knowledge, development capability, and production capacity, maximizing the value of recycled plastics and keeping products within the recycling loop at attractive returns. Thus, Cabka enables its customers to fully participate in the circular economy. 
 

Product lowering cost and carbon profile 
Cabka distinguishes itself in being able to integrate the entire recycling-to-production chain in a one-of-a-kind process, significantly lowering customer’s costs and more than halving their carbon footprint. 
 

Product portfolio tailored to clients 
Cabka produces over 150 different models of pallets, containers & ECO products serving blue-chip clients in European key markets as well as the US. Over 85% of Cabka’s revenue is recurring by nature, based on innovative customized solutions deeply embedded in its client’s core logistic chain. 
Cabka’s position is based on a consistent focus on R&D and creating intellectual property, providing a strong competitive edge through in-house developed, patented expertise. 
 

Global trends reshaping plastic transport packaging market 

Logistics chain rationalization 
The strategic relevance of logistics chains drives needs for innovative solutions. Plastic pallets are well equipped to be used in fully automated warehousing with zero tolerance for system failure and to fill the increasing demand for more hygienic pallet solutions: easy to clean, no mold, no splinters etcetera. In addition, major pallet pooling companies are shifting towards plastic and larger consumer goods and retail players are forced to integrate plastic packaging solutions into their strategy. 

Sustainability 
Circular business models and sustainability are at the core of corporate and regulatory agendas enhancing a strong interest in sustainable products with characteristics like reusability, recyclability, and the use of recycled materials. Additionally, residual value management is developing into an increasingly important topic, with goods out of recycled plastics being especially attractive when they reach the end of their product life cycle. 
 

Closing the loop from waste to end-products 
Cabka has the unique ability to cover the entire recycling value chain from waste recovery to product design and production and manufacturing of high-end customized products. Most competitors only cover part of the value chain, either from waste to recycled material, or from recycled material to final product. This provides Cabka with a unique competitive advantage. 
 

Consistent focus on R&D and creating intellectual property 
Providing a strong competitive edge through in-house developed, patented expertise in three distinctive areas: 

Advanced material engineering
Material laboratory that enables continuous testing of material characteristics providing Cabka with a one-of-a-kind database of recycled materials and formulations and material formulation expertise, optimizing product material input with tailor-made approach. 

Product design
Design and simulation of products to match the exact specs and needs of customers. Cabka owns the intellectual property on product design of most customized material handling solutions, further increasing competitive edge. 

Advanced processing technology:
In-house developed recycling, sorting, and processing technologies with strong focus on advancing Automation within Cabka’s existing processes. Seamlessly incorporated cutting-edge low pressure and multiple molding technology, partly with in-house designed machines and tools. 

Key strategic objective for targeted acquisitions 
Cabka’s has identified an acquisition strategy focused on expanding both end-market and recycling position across Europe and the US. As to end-markets focus will be on complimentary value adding products, and geographical spread. As for recycling, Cabka strongly believes it can benefit from increased supply chain control through recycling further backwards integration of its material in-flow. 

Four operational levers to optimize efficiency 
Formulation 
Engineering recycled plastic products, complemented by in-house recycling, resulting in shift towards lower value waste streams. This shift results in lower material costs, increased competitiveness and a higher security of supply 
Automation 
A target of >30 percent reduction of manual labour through more than 15 identified opportunities for automation and smart factory technologies 
Enhanced efficiency 
Improve average capacity utilization rates to utilize approx. 20 percent spare capacity in current facilities, driving significant efficiency improvements leveraging the existing asset base 
Asset light strategy 
Outsourcing of production with limited specialized know-how (for example through using tollers and manufacturing partners for the use of high-pressure molding machines), which results in lower capital intensity and shifts focus of investments to new products and automation, subsequently improving cash conversion. 

Strong balance sheet 
Strong liquidity position, well within financial covenants as per YE21, with. EUR 45.5m cash inflow following from Combination with Dutch Star Companies TWO 
 

Geographical presence

  • Belgium 
    Ieper and Herstal, Production facilities 
  • Germany 
    Berlin, Group Headquarters 
    Weira and Genthin (to be consolidated by Q3/2022), Production facility
    Schmiedefeld, Contract manufacturer 
  • Spain 
    Valencia, Innovation center 
    Castalla, Contract manufacturer 
  • The Netherlands 
    Amsterdam, Holding company 
  • USA 
    St. Louis (MO), Production facilities