proFagus Group

Germany's leading manufacturer of high-quality beech wood charcoal and natural additive products

Company

The Arbonium Technologies Group is an integrated manufacturer of sustainable carbon and specialty chemical products based on beechwood. At its biorefinery in Bodenfelde, Lower Saxony, the company processes exclusively regional, untreated beechwood and markets the resulting material streams through its Consumer and Biochemicals business units. While the Consumer segment distributes premium barbecue charcoal and barbecue charcoal briquettes under the proFagus brand, the Group also produces and markets a broad range of bio-based specialty products, including pharmaceutical raw materials, smoke flavours, high-quality aroma oils and aroma extracts, flavour preparations, acetic acid in various qualities, wood oils, tar products and charcoal fines.Wood oil and wood tar products, together with tailor-made charcoal granules, complete the product portfolio. With the expansion of its activities in Food Ingredients and Specialty Chemicals, Arbonium Technologies is increasingly evolving from a traditional charcoal producer into a specialised biorefinery focused on high-margin applications in the food, pharmaceutical and other industrial sectors.

 

Inititial Situation

In order to support further growth of the business Borromin, alongside the company's management, acquired a majority stake in proFagus group in May 2010. Some of the individual private investors who sold the business remain committed to proFagus via re-investments. The transaction structure developed by Borromin allowed for the optimal financing of the seasonal working capital requirements as well as investment in the expansion of the production capacity.


Corporate Development

Since the acquisition of its stake in proFagus in May 2010, Borromin has supported the company’s management team in particular in further developing its integrated biorefinery strategy and expanding the Biochemicals business unit:

  • Modernisation and expansion of the production facilities in Bodenfelde
  • Investments in environmental and sustainability measures as well as CO₂-reducing technologies
  • Establishment and scaling of the Biochemicals business unit, including sales, product development and application expertise
  • Establishment and expansion of proFagus Food Solutions as a platform for smoke flavours, flavour preparations and food additives
  • Expansion of direct sales and internationalisation of the Specialty Chemicals and Food Ingredients business
  • Further development and strengthening of proFagus’ premium market position in the Consumer segment
  • Restructuring of the corporate group around business units with development potential for strategic M&A activities