The acquisition of the West Bromwich based company, is a further strategic step by Red in expanding and strengthening their position as one of the UK’s leading independent waste management businesses. The Red Industries Group have acquired the share capital of Perks Patel Holdings Ltd, including Haz Holdings Ltd and Haz Industrial Services Ltd (trading as Haz Environmental).
Midlands based Red Industries started as hazardous waste specialists in 2006 – they have since grown significantly, both organically and through acquisition, to provide a vast range of hazardous and non-hazardous waste solutions to customers across the UK. This is the second acquisition within 12 months for Red Industries, and the third within three years; last year the company acquired waste management business Environmental Resource Group (ERG). The successful integration of prior acquisitions into the Red Industries Group, including the purchase of Walleys Landfill in 2016, has built a strong platform for growth supported by an experienced management team.
The deal includes Haz Environmental’s two sites in West Bromwich, including treatment facilities and offices, as well as their employees, customer base, and their Industrial Services arm of the business. The directors of Haz Environmental, Jit Patel and Gary Perks, will participate in an earn-out period, helping provide a seamless transition period for existing clients.
Commenting on the announcement 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.”
He continues, “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.”
Director Steve Bell from the Castle Square Team led on the deal, 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 UK’s 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. Claire O’Connor said: “We are delighted to have supported Red on the acquisition of Haz Environmental. Red is an ambitious, fast growing business and this acquisition – one of a number we’ve advised on in the waste sector – will be a catalyst for further growth.”
Chris, Relationship Director, Corporate banking at HSBC said, “Red has an excellent management team who integrate acquisitions with care and skill – I am pleased to have supported them again, in taking the Group further in their growth story’’.
HSBC was advised on the legal aspects of the transaction by James Burdekin at Keebles LLP with Due Diligence on the acquisition undertaken by Rob McCarthy and the team at RSM Corporate Finance.
Haz Environmental was advised by Douglas-Jones Mercer solicitors.