Staffordshire based waste management company Red Industries has expanded and strengthened their position as one of the UK’s leading independent waste businesses with the acquisition of competitor - West Midlands-based Haz Environmental, in a transaction which Sheffield based specialist Corporate Finance Firm, Castle Square Corporate Finance, acted as the Lead Advisor.
Midlands-based Red Industries started in 2006 as a hazardous waste specialist. They have since grown significantly, both organically and through acquisition, to provide a vast range of hazardous and non-hazardous waste solutions to customers across the UK.
The acquisition of the West Bromwich based company is a further strategic step by Red Industries in expanding and strengthening their position as one of the UK’s leading independent waste management businesses. This is the second acquisition within 12 months for Red Industries, and the third within three years. In 2018 the Group acquired Environmental Resource Group (ERG) which followed the acquisition of Walleys Landfill in 2016.
Adam Share, CEO and founder of Red Industries, said
: “We are pleased to announce the acquisition of Haz Environmental. We’ve developed a good relationship with Jit and Gary, the directors of Haz Environmental, who will be remaining with the business during a transition period as we work to integrate the company into the wider Red Industries Group.”
He continues, “The deal is another positive acquisition for the Red Industries Group, the business complements our existing waste management activities and further strengthens our position in the marketplace as leading waste management services providers.”
Sheffield based dealmakers; Castle Square Corporate Finance provided corporate finance advice to Red Industries, leading negotiations on the acquisition of Haz Environmental, and also acting as Lead Advisor on the fundraising process. Castle Square is a mid-market specialist corporate finance boutique with a proven track record in working with management teams to agree on acquisition terms with targets involved in a buy and build strategy and deliver the necessary funding via debt and equity markets.
Director Steve Bell from the Castle Square Team led on the deal, running a structured process which resulted in HSBC providing debt finance to secure the acquisition alongside a working capital facility.
Steve Bell said,
“Following on from the acquisition of ERG which created a platform to deliver the strategic growth plan, it was a pleasure to support Red Industries on this acquisition. The transaction further solidifies Red Industries as one of the UK’s leading independent waste management businesses.
Following on from funding the acquisition of ERG, HSBC further showed their support for the business by providing the funding necessary to complete this acquisition.” HSBC’s Sheffield based Chris Alsop led the team, who provided the debt part of the acquisition finance alongside working capital facilities.
Legal advice to Red Industries was provided by Squire Patton Boggs, with the team led by Claire O’Connor, assisted by Paul Mann and Indy Bening.
Claire O’Connor said:
“We are delighted to have supported Red Industries on the acquisition of Haz Environmental. Red is an ambitious, fast-growing business and this acquisition – one of a number we’ve advised on in the waste sector - will be a catalyst for further growth.”
Chris, Relationship Director, Corporate Banking at HSBC said, “
Red has an excellent management team who integrate acquisitions with care and skill – I am pleased to have supported them again, in taking the Group further in their growth story’’.
HSBC was advised on the legal aspects of the transaction by James Burdekin at Keebles LLP with due diligence on the acquisition undertaken by Rob McCarthy and the team at RSM Corporate Finance.