Waste management firm snaps up competitor

Staffordshire-based Red Industries has boosted its position as one of the UK’s leading independent waste management businesses with the acquisition of West Bromwich-based competitor Haz Environmental.

Red Industries started as hazardous waste specialists in 2006 and has since grown significantly, both organically and through acquisition, to provide a range of hazardous and non-hazardous waste solutions to customers across the UK.

The acquisition of Haz is its second purchase within 12 months and the third within three years.

In 2018 the group acquired Environmental Resource Group (ERG) which followed the acquisition of Walleys Landfill in 2016.

Adam Share, CEO and founder of Red Industries, said: “We are pleased to announce the acquisition of Haz Environmental. We’ve developed a good relationship with Jit and Gary, the directors of Haz Environmental, who will be remaining with the business during a transition period as we work to integrate the company into the wider Red Industries Group.

“The deal is another positive acquisition for the Red Industries Group – the business complements our existing waste management activities and further strengthens our position in the marketplace as leading waste management services providers.”

Sheffield based dealmakers Castle Square Corporate Finance provided corporate finance advice to Red, leading negotiations on the acquisition of Haz, and also acting as lead advisor on the fundraising process.

Director Steve Bell from the Castle Square Team led on the deal, running a structured process which resulted in HSBC providing debt finance to secure the acquisition alongside a working capital facility.

He said: “Following on from the acquisition of ERG which created a platform to deliver the strategic growth plan, it was a pleasure to support Red on this acquisition. The transaction further solidifies Red as one of the Uks leading independent waste management businesses. Following on from funding the acquisition of ERG, HSBC further showed their support for the business by providing the funding necessary to complete this acquisition.”

HSBC’s Sheffield based Chris Alsop led the team, who provided the debt part of the acquisition finance alongside working capital facilities.

Legal advice to Red was provided by Squire Patton Boggs, with the team led by Claire O’Connor, assisted by Paul Mann and Indy Bening.

HSBC was advised on the legal aspects of the transaction by James Burdekin at Keebles with due diligence on the acquisition undertaken by Rob McCarthy and the team at RSM Corporate Finance.

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