Credential Environmental Ltd (United Kingdom) - Oct 2007

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01 October 2007

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Bridges Ventures has committed £6m to support type reprocessing business Credential Environmental Ltd, taking a significant minority stake in the company. The transaction includes an initial investment of £4m, which will be used to continue Credential’s on-going organic growth, in addition to a further commitment of £2m to fund future development, including possible bolt-on acquisitions. The deal was sourced through an existing relationship with Andy Hinton and Nick Wyatt, who bought Credential in 2005. Bridges was attracted to the business due to the obvious environmental benefits of the company’s service and the fact that its sites are all based in underdeveloped areas of the UK, two factors it exclusively targets in its investments.

Company

Credential, based in Newton Aycliffe, processes and recycles used tyres and other garage waste. The company was founded in 2000 and has since grown substantially, particularly following the 2002 EU Landfill Directive, which banned the disposal of whole tyres and shredded tyres in landfills. The business collects approximately six million tyres per annum and has invested in Northern Europe’s only cryogenic crumbing plant, Tyregenics Ltd, to produce highly-valued end products such as fine rubber crumb for artificial sports surfaces. It currently employs more than 100 staff and generates turnover of £12m, which the investors hope will rise to £25m-£30m within the next three to four years.

People

Carolyn Maddox, Sam Archer and Maggie Loo handled the transaction for Bridges, with Maddox joining Credential’s board.

Advisers

Company - DLA Piper, Wendy Harrison (Legal)Equity - BDO Corporate Finance, Anton Homer, Matt Copley (Financial Due Diligence)Equity - BDO Stoy Hayward, Anton Homer, Matt Copley (Financial Due Diligence)Equity - Oakdene Hollins, Steve Slater (Technical/IT Advice)Equity - WardHadaway, Martin Hulls (Legal)

Sourced from: 0 unquote" 356 (Nov 2007)