Deal creates one of UK’s largest independent hazardous waste groups

One of the UK’s largest independent hazardous waste businesses has been created following the merger of two West Midlands businesses.

Red Industries, based in Newcastle-under-Lyme, has bought Walsall-based Environmental Resource Group (ERG) to create a £40m-turnover group.

The deal has been supported by a £39m funding package from BGF and HSBC.

Founder and chief executive Adam Share said: “Over the last 12 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.”

The acquisition by the Red Group includes ERG’s waste facilities in Brownhill and Dudley, and its subsidiaries Chemtech and Envirosol.

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.

Aaron Baker, an investor at BGF who also joins the board of Red Industries, said: “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.”