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Lidl to acquire Tönsmeier


Jürgen Tönsmeier, Source: Tönsmeier
02.07.2018 − 

The die is cast. Europe's largest retail group, the Schwarz Gruppe is to purchase Tönsmeier, the fifth largest waste management company in Germany. With the acquisition via its subsidiary GreenCycle GmbH, Schwarz – the parent company of the Lidl and Kaufland grocery chains – is substantially expanding its waste management and recycling business. There had been growing indications in recent weeks that GreenCycle was interested in the family-owned Tönsmeier. Schwarz and Tönsmeier had chosen not to respond directly to requests by EUWID for confirmation.

As of Monday, however, the concerns have confirmed the planned deal. Tönsmeier had concluded an agreement with GreenCycle, they said. The sale remained subject to a number of conditions, among them the approval of competition authorities. The parties to the transaction had entered a non-disclosure agreement with respect to the sales price. With over 3,000 employees in Germany and Poland, Tönsmeier generated sales of around €500m in 2017. The company is head-quartered in Porta Westfalica, around 70 kilometres west of Hannover.

The Tönsmeier family announced several months ago that they were planning to sell. The company was looking for a financially strong investor to implement its medium- and long-term growth strategy. The decision had been motivated by upcoming developments including the implementation of Germany’s new Packaging Law and amended Commercial Waste Ordinance as well as the introduction of the circular economy in Poland. In the coming years, this legislation alone would have required Tönsmeier to commit more than €150m in addition to its ongoing investments.

"We have achieved this goal with GreenCycle, which made the most convincing offer. Although as part of the Schwarz Group, GreenCycle, belongs to one of the largest retailers in the world, it is also a family-run company that thinks long-term and acts sustainably. I am convinced that the prospects it offers our customers and employees are good. Tönsmeier will enrich GreenCycle," said Jürgen Tönsmeier, chair of the company's supervisory board.

 

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