Palatine Impact Fund backs fast growing waste management business
Private equity investor Palatine has invested in Swinton-based waste management and recycling business Roydon Recycling.
The deal marks the second investment from its Impact Fund II, which seeks to invest £10m – £25m in commercially driven businesses with a mission to positively impact on society or the environment.
Headquartered in Swinton, Greater Manchester, Roydon Recycling works with food and beverage manufacturers across Europe, advising on waste management strategies to increase resource efficiency and support the circular economy.
As a division of wider Roydon waste business Roydon Recycling turned over £25,480, 364 in figures published in March for the financial year to October 2022, and made £2,810, 305 in pre tax profits, a sharp rise from the previous year’s profit of £830,853 on turnover of £18,193,283.
Roydon Recycling is being carved out of the Roydon Group and current CEO, Paul Hodgkiss will continue to lead the company, with all existing staff to remain with the business as part of the investment.
Paul Hodgkiss joined Roydon Recycling in 2010 and is leading the business through an impressive growth phase, with turnover doubling over the past three years. Ian McAulay will join Roydon Recycling as Chair, utilising his experience from previous roles, which include CEO positions at both Southern Water and Viridor.
Working with Palatine’s Impact Fund, the plan is to expand of Roydon Recycling’s European footprint by working with new and existing clients, and embracing digital and technological enablement.
Greg Holmes, Impact Investment Director at Palatine, said: “Roydon is proven market-leader in developing innovative waste strategies, audits, consultancy and management.
“Given the circular economy is so high on the agenda, it is great to welcome a company with such an aligned mission to our Impact Fund, as we continue to deliver returns with purpose.
“We are excited to be working with the passionate team, with whom we share so many common values and look forward to using our experience to help the business grow its market presence and also supercharge its own internal opportunities.”
Paul Hodgkiss, CEO of Roydon Recycling, said: “The team at Roydon Recycling has significantly grown over the last few years, as well as achieving great results. The investment from Palatine will enable us to multiply our positive impact with new and existing clients, as we aim for a fully circular economy.
“We are incredibly driven by what we do and are thrilled to have found an investment partner with the same passion, and that has a track record of both impact investing and a deep commitment to ESG over many years.”
The investment is the second from Palatine’s returns-focused Impact Fund II, which invests up to £25m in companies that are creating social or environmental change and tackling some of the biggest issues in society.
Palatine was advised by CIL (commercial), Gateley (legal), Fluid IT (technology and operations), RSM (tax) and The Quinn Partnership (management). Roydon Recycling was advised by Sedulo (corporate finance), Squires (legal) and RSM (financial).
