Irwin Mitchell Advises On Acquisition

Law firm Irwin Mitchell has advised on a deal which has seen waste management service company, Red Industries, acquire the non-hazardous landfill business from Tarmac.

The landfill business takes mixed non-hazardous commercial and industrial waste and represents a strategic acquisition to Red Industries allowing the Group to offer the collection and disposal of a wider range of waste streams to existing clients, as well as growing the newly acquired business organically through a more targeted marketing strategy, driving growth in revenue streams.

The business operates as Walleys Quarry and is based in Newcastle Under Lyme and was non-core to Tarmac.

Established in 2005, Red’s current main site is based in Burslem, Stoke-on-Trent and provides waste collection, recycling, recovery and treatment services to customers Nationwide.

It has key environmental permits which allow it to process and dispose of hazardous and non-hazardous waste.   Clients come from a wide range of industrial sectors including servicing some of the major blue chip waste management companies.

Red also provides a full waste audit and consultancy service, with highly experienced environmental consultants evaluating the waste management processes of clients and offer recommendations on where operational efficiencies, cost savings and improved environmental performance can be achieved.

Chief Executive of Red Industries, Adam Share said: “This acquisition fits very well with Red Industries Waste's strategy of expanding its waste management capabilities and also adds a power generation business to our portfolio.”

Kevan Shaw, Director of Sheffield based deal making firm Castle Square Corporate Finance advised Red Industries in negotiating the transaction price and leading the fundraising process. This resulted in HSBC refinancing the existing borrowings within Red, as well as providing acquisition finance, property finance and working capital facilities, to allow the transaction to complete.

Due diligence for HSBC was undertaken by Andy Ryder and the team from Shorts, with legal advice being provided by Dean Gormley, Martyn Holland and Hayley Johnson of Irwin Mitchell.

Chris Alsop, HSBC Relationship Director, said “Red Industries has demonstrated significant organic growth over a number of years and we are pleased to be able to provide our support. The funding will help Red Industries to realise their ambitious growth plans and we look forward to working with them going forwards.”