Papilo Completes Third Acquisition in a Year with Scottish Deal
Papilo, a waste management group based in Swinton, Greater Manchester, has announced its third acquisition within the last 12 months. The company, which is supported by private equity firm Palatine, has acquired REKK Recycling, a business located in Uddingston near Glasgow. This strategic move significantly extends Papilo's geographical reach across the United Kingdom.
Founders to Remain with Expanded Business
The founders of REKK Recycling, Steven Dodds and John Byrne, will continue to be involved with the company as it integrates into Papilo. Papilo is backed by Palatine's Impact Fund, emphasizing its commitment to environmental and social governance. This acquisition follows Papilo's previous deals, including the purchase of Midlands-based Allwood Recycling in February and North West-based Silverwoods Waste Management last year.
Michael Gibson, who recently joined Papilo as CEO, commented on the acquisition. He stated, "REKK is an excellent strategic addition for Papilo and enhances our geographical presence into Scotland. Like ourselves, the company's ethos is built on best-in-class customer service and on supporting better environmental outcomes through recycling. Founders Steven and John have done a fine job in building the business, and I am pleased that along with their team they are remaining with the group for the next phase of growth."
Strategic Fit and Future Growth Plans
Greg Holmes, senior investment director at Palatine Impact Fund, highlighted the alignment between the two companies. He said, "REKK is an excellent fit for Papilo – not just geographically, but in its shared commitment to diverting waste from landfill and supporting clients to take a more responsible approach to resource management. This is Papilo’s third acquisition in under a year as we build a business of true scale in the circular economy in partnership with the ambitious management team, and we are well-positioned to continue that growth through further strategic M&A."
The financial details of the transaction were not disclosed. The acquisition was funded by Kartesia and Virgin Money. Papilo received advisory support from Gateley for legal matters, Fellwood Advisory for debt advisory, MHA Smalley for financial and tax due diligence, and Luminii Consulting for commercial due diligence. REKK was advised by KBS for corporate finance and Mackrell for legal aspects.
