Deal to acquire global supply chain business
Telford-headquartered Reconomy, a provider of outsourced, asset-light services to the circular economy, has acquired Bradford-headquartered global supply chain business, Advanced Supply Chain Group (ASCG).
ASCG will continue to operate under its own brand within the Reconomy Group’s Product Returns division, collaborating across the business and joining recently acquired ReBOUND and Cycleon in developing ways for retailers to make their supply chain a competitive advantage.
The chairman of ASCG, Mike Danby, exits the business as part of the deal.
Claire Webb will continue to lead the business as managing director with Ben Balfour as business operations director, supported by an exceptional senior leadership team.
ASCG already employs 1,800 people globally and plans to create around 800 jobs during its peak season, including roles at sites in Bradford, Halifax, Sheffield and Corby, as well as HGV drivers across the UK.
Webb said: “We’ve experienced high growth for more than a decade and we have ambitions to accelerate this, while continuing to push boundaries for supply chain innovation.
“Since joining the business three years ago, I’ve been continuously impressed by our team’s ability to use intelligent supply chain solutions to solve problems and create game-changing processes for our retail customers.
“Our people and culture are key to our success to date and will continue to be as our values remain.
“We are creating hundreds of jobs across the north and midlands, and this means we can offer even more rewarding career opportunities to existing teams and new hires.
“The deal marks a statement of intent for the future and provides huge benefits for our team and customers now we’re part of a bigger yet still entrepreneurial organisation.
“ESG is top of every business’ agenda and with Reconomy’s credentials and track record, we’ll be able to help our clients with their sustainability goals.
“We look forward to working with everyone at Reconomy to achieve our combined ambitions.”
Paul Cox, CEO of the Reconomy Group, added: “It’s fantastic to welcome ASCG and the team to the Reconomy family.
“This deal was attractive because of ASCG’s deep sector expertise, exceptional team, innovative bespoke technology, agile culture and unwavering approach to excellent customer service, which matches our own.
“The breadth of ASCG’s value-added services will enhance the Reconomy Group’s existing industry-leading product returns proposition.
“We’re excited about the future potential and confident that this acquisition will allow us to provide even more comprehensive support to our customers as they pursue sustainable, circular approaches.”
Danby, executive chair at ASCG, said: “It’s extremely rewarding to be leaving the business in the hands of such a capable management team and with fantastic, forward-thinking owners.
“I look forward to seeing what ASCG goes on to achieve in the next chapter.”
KPMG Corporate Finance acted as lead advisor to ASCG, which was also advised by DWF (legal), EY (financial due diligence) and PwC (commercial due diligence).
Giles Taylor, corporate finance partner at KPMG, said: “We were delighted to advise Advanced Supply Chain Group on this significant deal for the region.
“They have a fantastic business operating in a sought after industry, and offer tech-enabled logistics solutions that significantly enhance their customers’ supply chains from an efficiency, cost and carbon footprint perspective.”
Alasdair Outhwaite at DWF added: “ASCG is a fast-growing business with an enviable retail client list.
“The business has experienced more than a decade of revenue growth, and in joining with the Reconomy Group, this will enable the larger combined business to continue to expand and build on what is possible in supply chain innovation.”