Derotex welcomes Down2Earth as a partner to accelerate growth

Derotex, the market leader in recycled natural fibers, has entered into a partnership with the
investment fund Down2Earth Capital III (D2E). Following Derotex’ recent acquisitions of companies
active in upgrading production residues from the flax industry, Manu Lagast is taking the next step
in his company’s growth journey. With the support of D2E and management members Nicolas
Vandermarliere and Jan Steen, the new group “The Circular Fiber Group” is ready for the future.

Under the leadership of owner and CEO Manu Lagast, Derotex has grown significantly since 2013 to
become the market leader in recycling and upgrading natural fibers. In 2025, Derotex strengthened
its market position in recycled flax fibers through the strategic acquisitions of niche companies
Spillebeen and Vervaeke Fibre. At the same time, the management team was further reinforced with
Nicolas Vandermarliere and Jan Steen, who are also investing in the group alongside D2E. Together
with D2E as a capital partner, The Circular Fiber Group aims to further evolve through a targeted buy
and-build strategy into an integrated one-stop shop for (recycled) natural fibers.

Founded in 1997, Derotex is active in recycling various natural fibers, mainly jute, flax, and agave,
which are then upgraded for circular industrial end applications. These fibers are used across a wide
range of international end markets, including bio-insulation in construction, (geo)textiles, mattresses,
automotive, and paper industries. With recycled natural fibers, Derotex helps companies respond to
the growing demand for sustainable alternatives without compromising on quality or performance.
Derotex currently employs around 25 people and operates two production sites in Wielsbeke and
Izegem. In 2025, the group achieved consolidated revenue of more than €15m with €5.5m EBITDA.

CEO Manu Lagast looks forward to the next growth phase: “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 of Down2Earth 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.”

About Derotex: Derotex recycles and upgrades natural fibers, mainly jute and flax, for multiple, international industrial end
markets, including bio-insulation, (geo)textiles, mattresses, automotive and paper industries. For more information, please
consult: https://derotex.be or contact Manu Lagast (+32 477 29 29 01).

About Down2Earth Capital: Down2Earth Capital is an independent private equity fund, founded in 2013, focused on small
and mid-sized transactions in Belgium. D2E Capital combines many years of successful private equity experience with top
level industrial expertise. For more information: www.d2e.be or contact Matthias Neirynck (+32 471 06 85 76). 471 06 85 76).