Waste Management Service Company, Red Industries has acquired the non-hazardous landfill business from Tarmac, which is a member of the CRH PLC Group of companies.
The landfill business takes mixed non-hazardous commercial and industrial waste and represents a strategic acquisition to Red Industries allowing the Group to offer the collection and disposal of a wider range of waste streams to existing clients, as well as growing the newly acquired business organically through a more targeted marketing strategy, driving growth in revenue streams.
In 2015 Castle Square were lead advisors to the shareholders of Red on the Management Buy-Out and were retained to undertake an initial strategic review of the landfill business, identifying the underlying profitability and commenting on the valuation of the business proposed by the Vendors ahead of detailed negotiations.
A key issue addressed in the review related to the separation of the business from the CRH Group as it was not a separate trading entity. The business incurred several group services which had to be separately identified to allow an accurate assessment of the underlying performance.
Steve Bell, Director at Castle Square Corporate Finance said,
“It was a pleasure to continue to support the shareholders of Red with this strategic acquisition. The acquisition of the landfill business represents a significant development for Red and identifying the underlying performance of the landfill site was critical in the assessing the value of the business to Red.”
This acquisition fits very well with Red Industries Waste's strategy of expanding its waste management capabilities and also adds a power generation business to its portfolio. The acquisition will help Red Industries expand its portfolio of services to existing clients and provides it with a platform for further growth.