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FMG CIRCULAR INVEST

An investment initiative
to promote innovation in

      water treatment

  FMG Circular Invest is an investment initiative launched by Feralco and
   Mellby Gård. With Feralco’s knowledge of water treatment and Mellby
Gård’s long-term and active ownership, the aim of the initiative is to invest
   in and assist innovative companies that provide solutions linked to the

                             global drinking water shortage.

Following discussions on how to leverage Feralco’s vast                   the need for dilution. This innovation not only benefits the water
         knowledge of water treatment technology, Feralco and Mellby      treatment sector, but also the food and beverage industry.
         Gård created the FMG Circular Invest investment initiative.
The aim of the initiative is to invest at an early stage in companies       “The aim of FMG Circular Invest is to identify and support
offering various innovations related to water treatment solutions,        innovations that can contribute in one way or another to cleaner
supporting and developing them on their journey. It’s no secret that      water in the world,” says Mikael Helmerson, Vice CEO of Mellby Gård.
the availability of clean drinking water is one of the most pressing     “We’re convinced that our investments and our future collaboration
global challenges of modern times. Feralco and Mellby Gård’s goal is      with I-Phyc and Spec-Imaging will help ensure this.”
for FMG Circular Invest to help scale up these critical solutions and
bring them to market at a faster pace.                                    WANTS TO SUPPLY THE WORLD WITH CLEAN WATER
                                                                          In addition to adding value to the existing portfolio of companies,
  “Feralco has knowledge of the market, a large network and               FMG Circular Invest believes they can build additional pride and
experience in accelerating ideas in the industry, as well as regulatory   strength in their own organizations through this type of investment.
and M&A experience,” says Ludovic Huitorel, CEO of Feralco. “At the       In a way, everyone becomes part of a joint sustainability mission – to
same time, Mellby Gård can provide active and long-term ownership         provide the world with clean water.
and support the entrepreneurial spirit of each company. With this
combination, we believe we’re the optimum investor for companies             FMG Circular Invest now looks forward to being part of further
wishing to take the next step in the water treatment market.”             success stories and helping more companies in the water treatment
                                                                          sector and circular economy to grow and prosper. With an uncertain
FLYING START THROUGH TWO ACQUISITIONS                                     market situation ahead, it hopes to make further investments at more
FMG Circular Invest acquired stakes in two companies in 2022. Both        reasonable prices.
companies see great value in having Feralco and Mellby Gård as
strategic investors, as they provide much more than just financial          “Some of the young companies of interest to us are currently quite
support. Other investors with stakes in the two companies also speak      optimistically valued while not being profitable,” says Stephen
of the advantages in making investments together – namely creating        Childs, CEO of Feralco. “For us to invest, they must have a clear
synergies and added value. The goal of FMG Circular Invest is not only    business model and a path to profitability. We can see that the water
to invest but to also be an industrial partner and provide continuous     treatment sector will continue to consolidate due to this turbulent
support.                                                                  market situation.”

   The first investment made by FMG Circular Invest was in the British    VISION OF BECOMING A WORLD LEADER
company I-Phyc. The company offers a solution that complements            In the coming year, FMG Circular Invest aims to make between
Feralco’s water treatment offering. I-Phyc has developed a natural,       two and three investments in companies that are helping ensure a
patented, carbon-negative and environmentally sustainable solution        more sustainable world through water treatment solutions and the
for wastewater treatment. The treatment takes place using naturally       circular economy. At the same time, they look forward to helping the
occurring algae that are grown and absorb nutrients and pollutants        existing companies in their portfolio develop and grow by identifying
from the water.                                                           synergies between them.

   The second investment was in Spec-Imaging, based in Sweden.              “The long-term vision of FMG Circular Invest is to become the
This start-up bases its business concept on many years of research        leading investment company in water treatment. At the same
into optical measurement methods for liquids. The method that             time, we’re contributing to the green transition, circular economy
Spec-Imaging now has is patented and can help various organizations       and helping young entrepreneurs scale up their innovative ideas,”
measure concentration, color and turbidity in liquids – without           concludes Mikael Helmerson.

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