CirQono, an integrated demolition and construction waste services platform, is in “intense talks” regarding a further add-on acquisition in Eastern Germany, Marc P. Bielitza, partner at the firm’s private equity backer Deutsche Private Equity (DPE), told Mergermarket.

The expectation is that a transaction will be announced before the end of the year, Bielitza said.

With DPE’s support, the private German company is pursuing a buy-and-build strategy with the aim of becoming Berlin’s top construction waste disposal player and a major demolition company, its managing director Markus Spitzer said in the same interview.

The current acquisition focus is the region in and around Berlin where the company already has sites in the North and the South. CirQono is now looking to complete its coverage by making one or two further acquisitions, servicing the city’s East and West, Bielitza said.

The company has also identified Dresden, Halle, Leipzig, and Magdeburg as cities in which it would like to make acquisitions, Bielitza added. There are no plans to buy outside of Germany.

Ideal targets would generate annual revenues between EUR 5m and EUR 15m and be profitable, Bielitza said, adding “bigger would be better than smaller.” There is “a spectrum” of valuations, he said, without providing further details.

Acquisitions will be funded by CirQono’s internal cashflow along with support from existing bank relations, Spitzer said without providing further information on its lenders.

DPE would support any larger transactions if required, Bielitza added.

Management continuity is an important consideration for CirQono. “It is hard to find talent in this space, so we are keen to keep them on board, at least while we integrate the business,” Bielitza said.

CirQono is active in both demolition and construction waste disposal and while it is fundamentally interested in acquisitions in both segments – they are complementary as they play in the same value chain – at the moment the focus is a little more on waste disposal, particularly when thinking about potential deals in Berlin, Spitzer said.

One or more further deals could be announced in 2027, Spitzer and Bielitza said.

CirQono identifies deals via proprietary deal origination but also has a retained advisor, researching potential targets, Spitzer said without naming the firm.

The acquisition of G&F, announced in September, was originated over a long period of time, with the initial contact between CirQono and the two owner families dating back as far as 2024, Spitzer added.

While DPE leaves deal origination to CirQono’s management, it backs the business when it comes to strategy, deal structuring and post-merger integration, Bielitza said.

CirQono is expected to generate approximately EUR 40m of revenues in 2026, up from EUR 27m in 2025, according to Bielitza. The company is profitable and the aim is to generate annual revenues of EUR 100m over the next two to three years, he added.

While acquisitions play a crucial rule in CirQono‘s growth, the overall professionalisation of the business will also lead to organic growth. As an example of this professionalisation, Spitzer cited the company’s dedicated sales team which generates new business rather than relying primarily on personal relationships.

CirQono operates in a highly fragmented market with over 1,000 businesses in Germany operating in the same space, around 200 of which in Berlin. “These are mostly very small, owner-manged businesses, with a small number of trucks and around 15 to 20 staff,” Bielitza said.

Many companies are looking for succession solutions, which means CirQono can act as a consolidator, Bielitza said. Selling to an industry operator rather than a financial investor can appeal to owners, he added.

The market is also characterised by increased regulation, such as asbestos requirements and permitting considerations.

CirQono was founded when in 2022 DPE acquired DARE, which became the company’s core brand.

Russia’s attack on Ukraine led to significant slowdown in the Berlin construction market. “Between 2021 and 2024 our market contracted by about 50% and is still 20% below 2021 levels today. Over the same period CirQono grew by 8% organically and by 80% including add-ons,” Spitzer said.

In 2024, the company then made it first add-on acquisition, buying ARU, expanding its presence from northern Berlin into the South of the city.CirQono is headquartered in Berlin.

According to management, the company employs approximately 150 members of staff. It operates a logistics fleet of around 40 trucks and 2,500 containers and has three processing and sorting facilities with a combined size of 92,000 sqm.