BGF injects £5m into Johnsons Aggregates & Recycling

The fresh capital will enable the business, which recycles incinerator bottom ash (IBA), to build an £11m recycling facility in Stanton, Derbyshire. The new plant will triple the company's recycling capacity, from 150,000 tonnes per annum to 450,000 tonnes.

Following the deal, Johnsons will also look to expand its other services, including the supply of virgin and recycled materials and land remediation.

BGF investor Jon Earl will take a seat on the company board, alongside Paul Capell, formerly chairperson at Green Highland Renewables and non-executive chairperson at Aquamarine Power.

NatWest has provided a further £5m debt facility to support the transaction.

The transaction is BGF's second in the recycling space in quick succession, having invested £10m in Northern Ireland-based RiverRidge Recycling in September.

The deal also marks the second private equity investment in the British IBA space in H2 2016. In August, Elysian Capital acquired Raymond Brown Minerals and Recycling via a management buyout.

Company
Founded in 1999 and headquartered in Ilkestone, near Nottingham, Johnsons recycles IBA, extracting metals and converting the remaining products into aggregate for the construction industry. The company has a headcount of 50 and generated a turnover of £11m in 2015, with a pre-tax profit of £631,000.

People
Business Growth Fund – Jon Earl (investor).
Johnsons Aggregates & Recycling – Steve Johnson (CEO).

Advisers
Equity – Spearing Waite (legal).
Company – Cooper Parry (corporate finance); Gateley (legal).
Debt – Shoosmiths (legal).

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• Topics
• Expansion
• UK / Ireland
• Industrials
• United Kingdom
• BGF (Business Growth Fund)