Castle Square advise Red Industries on the acquisition of Pro-Clean Industrial Services Limited

Red Industries has continued to strengthen its position as one of the UK’s leading independent waste businesses with the acquisition of specialist Industrial cleaning business, Pro-Clean Industrial Services Limited (Pro-Clean).  Sheffield based specialist corporate finance firm, Castle Square Corporate Finance, acted as the Lead Adviser with legal advice provided by the Leeds office of Squire Patton Boggs for the recent transaction.

Midlands based Red Industries started as hazardous waste specialists in 2006 - 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 Wednesbury based Pro-Clean is a further strategic step by Red in strengthening the services offered to its corporate clients. Previous acquisitions included the Environmental Resource Group Limited in December 2018 and Haz Industrial Services Limited in September 2019. The strategic acquisitions contributed to the rapid growth of the national waste management company, which has been supported in realising its growth ambitions by BGF, the UK’s most active growth capital provider.

Adam Share, CEO and founder of Red Industries, said: “Working again with the Castle Square Corporate Finance team has helped us to grow our business further in 2020. With this most recent acquisition we are able to further strengthen our position as a national provider, building on our growing presence in the Industrial cleaning services market as well as provision of waste management solutions.”

Sheffield based dealmakers; Castle Square Corporate Finance provided corporate finance advice to Red Industries. In addition to leading negotiations on the acquisition of Pro-Clean, they also acted on the fundraising which saw HSBC extend facilities to the Group. Castle Square is a mid-market specialist corporate finance boutique with a proven track record of delivering complex transactions for acquisitive corporate clients.

Director Steve Bell from the Castle Square Team led on the deal, running a structured process which resulted in HSBC providing additional finance to the Group.

Steve Bell said, “Red Industries has a clear strategic growth to strengthen its position as one of the leading independent waste management companies. The acquisition of Pro-Clean provides Red Industries with the opportunity to broaden its service offering to the market and cements the platform to deliver further organic and acquisitive growth. It was a pleasure to advise Red Industries on this acquisition which was completed in a challenging commercial environment.”

Legal advice to Red Industries was provided by Squire Patton Boggs, with the team led by Paul Mann assisted by Indy Bening and Louise Parker on the Corporate side and Nick Bell and Rhianna Eden on the Banking. Paul Mann said: We are delighted to have supported Red Industries on the acquisition of Pro-Clean. Red Industries is an ambitious, fast-growing business, and this acquisition will be a catalyst for further growth.”

HSBC further showed their support for the business by providing increased Invoice Finance facilities to the Group. Chris Alsop, Relationship Director, Corporate banking at HSBC said, “I am very pleased to have supported this high calibre management team once again, demonstrating that we remain open for business to high quality funding proposals, despite the pandemic’.

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.

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