TES

Overview

TES is a leading global provider of Electronic Waste (“E-Waste”) Recycling and IT Asset Disposal (“ITAD”) services. Established since 2005 in Singapore, the company operates in more than 30 locations globally, with major facilities in Singapore, China, Australia, UK and Germany. TES is a market leader in the fast-growing E-Waste and ITAD industry with a strong reputation and significant potential for growth.

Investment Rationale

  • E-Waste is proliferating globally due to higher consumption of electronics products, shorter product cycles and quicker obsolescence
  • Globally, especially in Asia, penetration of processing electronic waste is low and is expected to increase
  • Industry growth is being driven by increasing concerns about contamination from landfills, legislation enforcing producer responsibility, and rising economic value of electronic waste
  • Industry is fragmented, and TES is in a strong position to consolidate the industry and emerge as a global market leader, with a wider variety of services to deliver to customers

KEY FACTS

SECTOR
Business Services

HEADQUARTERS
Singapore

INVESTMENT DATE
May 2013

NAVIS OWNERSHIP
73%

Value Add

  • Extending the global footprint especially in the ITAD business through acquisitions in Europe and the US
  • Extending recycling operations from electronic waste to batteries by investing in new recycling plants. Battery recycling is expected to be goldmine of recycling in the years to come
  • Improving service line operations with efficiencies such as implementing a cell layout combining segregation and demand operations at recycling plants, eliminating backlog and reducing cash-to-cash cycle time from 30 days to two days
  • Established a dedicated compliance and risk function, supported by a comprehensive set of policies and procedures. This reduced non-compliance issues and increased client satisfaction
  • Navis Portfolio Operations Director embedded full-time as Chief Information Officer to implement ERP upgrade delivering a single globally-integrated financial system, transactional recycling system and a customer business application for IT asset disposal
  • Strengthening of management team with key hires

Looking ahead

Leveraging its enlarged global footprint, TES is growing substantially above market by winning more blue-chip customers in industry, financial services, electronic manufacturers, and auto companies (for batteries). Key initiatives are in place, focusing on business development, such as assessing M&A opportunities to further expand coverage in Europe and the US, identifying new business segments across the IT lifecycle value chain, as well as facility expansion in the high growth E-Waste sector