Strong Red showing creates one of the UKs largest Hazardous waste specialists, ERG acquired by Red Industries
Red Industries of Staffordshire have acquired the share capital of waste management company, Environmental Resource Group (ERG).With effect from December 2018.
The acquisition of Midlands based ERG, is a further strategic step in expanding and strengthening our position as one of the UK’s leading independent waste management businesses, with future aspirations of growth.
The acquisition includes ERG’s waste facilities in Brownhill and Dudley, laboratory, offices, employees, and customer base. The acquisition strengthens our position in the market place – broadening our customer reach and service offering, adding additional waste management facilities, a larger client support team, and fleet of bespoke vehicles. ERG will benefit from Red’s market-leading operations, significant processing capability and highly experienced client service platform. ERG, which encompasses brands such as Envirosol and Chemtech, will continue to operate as a wholly owned subsidiary under the branding of the Red Group.
Commenting on the announcement Adam Share, CEO and founder of Red Industries, said: “We are proud to incorporate ERG into our business. It was clear from ongoing discussions that our companies are well matched and aligned in terms of strategy, ethos, and focus for the future. The acquisition of ERG complements Red’s existing waste management activities and secures more regional and national coverage in line with our growth strategy.”
A £39m funding package, from BGF, the UK’s most active investor in growing businesses, and HSBC, has initially supported Red Industries with the acquisition of ERG. Following an introduction by BGF, 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. Adam Share said: “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.”
Aaron Baker, an investor at BGF who joins the board of Red Industries, comments: “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 and continue to innovate in finding sustainable solutions for their clients.”