Down2Earth Capital Partners with Derotex in Circular Fiber Deal

Down2Earth Capital (D2E), a Belgian private equity fund, has entered into a strategic partnership with Derotex, the market leader in recycled natural fibers, to support the company’s next growth phase. The collaboration includes management investors Nicolas Vandermarliere and Jan Steen, who join D2E in backing Derotex’s expansion under the new group name, The Circular Fiber Group.

Derotex recently strengthened its position in the recycled flax fiber market through acquisitions of niche players Spillebeen and Vervaeke Fibre. These moves form the foundation of the Circular Fiber Group, which aims to become an integrated one-stop shop for recycled natural fibers. The partnership was announced in April 2026, with no financial terms disclosed.

Founded in 1997, Derotex specializes in recycling and upgrading natural fibers such as jute, flax, and agave. Its products serve diverse international markets including bio-insulation for construction, geotextiles, mattresses, automotive components, and paper manufacturing. Operating two production sites in Wielsbeke and Izegem, Belgium, Derotex employs approximately 25 people and reported consolidated revenues exceeding €15 million with €5.5 million EBITDA in 2025.

CEO Manu Lagast, who has led Derotex’s growth since 2013, highlights the strategic fit with D2E: “With D2E, we have found the right partner to further develop the group. During our discussions, we immediately noticed that we share the same values: passion for entrepreneurship, pragmatism, and focus. I am convinced that we can leverage D2E’s extensive experience in the further expansion of The Circular Fiber Group.”

Matthias Neirynck, Partner at Down2Earth Capital, adds, “From the very beginning, we were impressed by the entrepreneurial drive of Manu and his team. Derotex is a unique company active in an attractive niche and serves international clients across various markets. Circularity is a long-term trend in multiple sectors, and Derotex is perfectly positioned to respond to it. We believe that Derotex, together with its strong management team, is the perfect platform company to build a quality-driven group and fully realize the enormous potential in this market.”

The partnership supports a buy-and-build strategy focused on expanding Derotex’s product portfolio and operational footprint. Synergies are expected from cross-selling recycled fiber products across diversified end markets, consolidating production facilities, and streamlining supply chains. The integration of upgraded production technologies from Spillebeen and Vervaeke Fibre will enhance R&D capabilities and operational flexibility.

Industry trends favor sustainable and circular materials, with growing demand for recycled natural fibers in construction, automotive, and textile sectors. The Circular Fiber Group’s expanded offering aims to capitalize on these trends while strengthening its competitive position amid accelerating consolidation in the recycled fiber market.

Looking ahead, the group plans to continue targeted acquisitions and operational integration to build a comprehensive platform for recycled natural fibers. Challenges include aligning corporate cultures and maintaining product quality during expansion. Regulatory developments and supply chain stability will also be key factors in the group’s growth trajectory.

Overall, the partnership between Down2Earth Capital III and Derotex marks a significant step in scaling sustainable fiber recycling solutions, positioning the Circular Fiber Group as a leading player in the circular economy.