Papilo expands geographical footprint with scottish bolt-on

Papilo, the fast-growing total waste management group backed by our Impact Fund, has strengthened its geographical reach with the acquisition of Scottish company REKK Recycling.

Based at Uddingston near Glasgow, REKK provides total waste management solutions to its food production, manufacturing, and industrial clients across Scotland and England. It is the third key acquisition the Manchester-based company has completed in just under 12 months with the support of our Impact Fund team.

Greg Holmes, Senior Investment Director at Palatine Impact Fund 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.”

Rekk Recycling’s founders Steven Dodds and John Byrne are remaining with the business as it becomes part of Papilo, which in February acquired Midlands-based Allwood Recycling Solutions, creating a £60 million revenue business with more than 200 employees.

Michael Gibson, who joined Papilo as CEO earlier this month said: “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.”

The transaction was funded by Kartesia and Virgin Money.

Papilo was advised by Gateley (Legal), Fellwood Advisory (Debt advisory), MHA Smalley (Financial and Tax Due Diligence) and Luminii Consulting (Commercial Due Diligence).  Advisers to REKK included KBS (Corporate Finance) and Mackrell (Legal).