Red Industries secures £39m funding package
Red Industries, the hazardous and non-hazardous waste management business, has secured a £39m funding package from BGF, the UK’s most active investor in growing businesses, and HSBC.
The funding has initially supported the acquisition of Environmental Resource Group (‘ERG’), and the newly expanded business is now one of the UK’s largest independent hazardous waste businesses and with aspirations for further growth.
Founded by CEO Adam Share in 2006, Staffordshire-based Red Industries has grown significantly – both organically and via acquisition to offer total waste management solutions to customers. Committed to finding environmentally compliant total waste management solutions, Red acquired a non-hazardous landfill site in 2016, including an on-site power generation plant which converts methane gas into energy. The Red Industries Landfill Communities Fund was set up in 2017 and has funded numerous projects in the surrounding areas.
The acquisition of Midlands-based ERG broadens Red Industries’ customer reach and service offering, adding additional waste management facilities, a larger client support team and fleet of bespoke vehicles. ERG will benefit from Red’s market-leading operations, significant processing capability and highly experienced client service platform.
Following an introduction by BGF, Alex Sleeth will join Red Industries as Non-Executive Chairman, bringing 19 years’ experience operating at Board level across a wide range of business services sectors.
Adam Share, founder and CEO of Red Industries, comments: “Over the last twelve years, we’ve significantly grown and expanded Red Industries to become a market leader in the waste management sector.
“The acquisition of ERG will help us develop the platform to grow the business even further, and we’re delighted to have BGF on board as partner through this next stage of growth.”
Aaron Baker, an investor at BGF who joins the board of Red Industries, comments: “We’re thrilled to be partnering with Red at such an exciting stage of their journey. Adam and the team have built an exceptional business over the last few years, and ERG is a great addition to the group. We’re looking forward to help Red realise their ambitious growth plans over the next few years and continue to innovate in finding sustainable solutions for their clients.”
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