Desotec is a provider of mobile industrial filtration services, based on activated carbon (“AC”), that enables customers to comply with increasing environmental regulations and sustainability requirements.
Founded in 1990, Desotec has pioneered the market for the purification of liquids and gases through mobile activated carbon filters. During its more than 25 years in business, the company has established itself as a European market leader in this field. Desotec provides filtration services that enable its customers to comply with increased environmental regulations and sustainability requirements and to serve mission-critical filtration needs offering a flexible rental solution.
The company operates three state-of-the-art reactivation furnaces with a combined annual total capacity of around 12,400 tonnes of output. In addition, it has a fleet of around 1,800 mobile filters. Desotec has achieved an average annual top-line growth of 16% over the past decade and in 2016 generated approximately EUR 50 million in sales.
Market trends and drivers
The overall activated carbon filtration market is expected to grow mid-single digit, driven by increased regulation, CSR awareness, growing industrial output, and further penetration of mobile filters. The activated carbon filtration market in Europe can be split into mobile and fixed filtration. The mobile segment, in which Desotec is active, is growing significantly faster. Advantages of the mobile solution include: minimal upfront investments required for the customers, modular up- or down-scaling of filter capacity, plug-and-play concept with closed systems avoiding carbon handling on-site, no maintenance costs for the customers, and minimal downtime of the customer's operations.
Desotec's strong position in a growing market, in combination with a high share of recurring revenues, makes it an attractive investment. EQT VII is keen to support Desotec's growth both organically and in-organically.