Papilo Steps up Growth with Circular Economy Bolt-On Deal

Papilo, the total waste management solutions provider backed by Palatine’s Impact Fund, has accelerated its growth with the bolt-on acquisition of a specialist agricultural landspreading business.

The deal for the organic waste landspreading (‘Waste-to-Land’) division of Silverwoods Waste Management Ltd, an award-winning Lancashire business, broadens Papilo’s service offering and enhances its already strong sustainability credentials. Silverwoods Waste Management Ltd will continue to operate its Altham waste transfer station and in-vessel-composting facility in Cumbria.

The transaction will boost the Manchester-based company’s revenues by more than £5 million marking the first acquisition for Papilo since the returns-focused Impact Fund invested in June 2023.

The acquired business is well-established and has been a part of Papilo’s supply chain for over 15 years. It works with major food manufacturers and water utility companies to identify the agricultural benefit within their organic waste streams and distributes them to the agricultural sector, with the waste ultimately being used by farmers as natural fertiliser.

Paul Hodgkiss, CEO of Papilo said:” At Papilo our goal is to lead the way in fostering a circular economy, where waste is minimised, resources are maximised, and everything we do contributes to a healthier planet. We are delighted therefore to have acquired Silverwoods Waste Management’s Waste-to-Land division, a deal that accelerates our growth while increasing our sustainable business mission.

“The founder Julian Silverwood has done a first-class job in growing this business and we look forward to supporting him and the team as they join forces with Papilo.”

Greg Holmes from Palatine’s Impact team added: “This strategic bolt-on acquisition strengthens Papilo’s strong ESG credentials and will offer the business a further opportunity to grow through cross selling its services to existing customers. We are pleased to have completed the first acquisition since our investment and continue to look at a number of other opportunities for the business.”

Will Griffith, KPMG’s UK Head of Waste & Recycling M&A added “This investment will enable Papilo to expand its total waste management offering and Silverwoods’ Waste-to-Land division has found a long-term home to flourish. We are pleased to have advised on the transaction which emphasises the opportunities within a buoyant UK Waste & Recycling M&A market.”

Papilo was advised by law firm Gateley. MHA provided financial and tax due diligence, while Cura Terrae provided environmental due diligence. Silverwoods Waste Management was advised by KPMG Corporate Finance and KPMG Legal. The transaction was supported by Virgin Money via its Sustainability Linked Loan product.