LBO France has sold its stake in the innovative recycling solutions company Zato to European fund Abenex, marking a successful exit from its investment strategy in the circular economy sector.

Target Company Overview

Zato, an Italian company founded in Brescia over two decades ago by Valerio Zanaglio, is a globally recognized leader in technological solutions for the processing and recovery of both ferrous and non-ferrous metals. With annual revenues nearing €50 million, Zato operates in over 50 countries, including the United States and Japan, with more than 90% of its business generated internationally. The company has embraced innovative practices in the circular economy, successfully integrating artificial intelligence algorithms and IoT processes to develop advanced equipment in a market traditionally dominated by mature products.

Since its inception, Zato has made significant strides in the clean energy transition, becoming a premier player in the green economy. The company's continuous growth trajectory has been marked by an average annual growth rate exceeding 20% since being acquired by LBO France in 2022.

Industry Overview in Italy

The recycling and waste management industry in Italy has experienced a notable transformation, largely fueled by increasing environmental awareness and governmental policies aimed at promoting sustainability practices.