In-vessel composting tech firm sells stake to equity group

The deal, finalised in June, gives Leeds-based Ailsa3 a “significant minority stake” in the New Zealand technology company, which operates as VCU Europa in the UK.

Andy Hinton and Nick Wyatt of investment group Ailsa3 are aiming to help expand VCU technology in the UK

It is the latest in a string of investments by Ailsa3 in the waste management sector, after the fund's owners sold medical waste company, White Rose Environmental, for 35 million in 2004.

The company counts automotive waste management specialists Credential Environmental among its recent acquisitions (see letsrecycle.com story).

Expand
Ailsa3 hope the money will help expand VCU's production of composting systems in the UK. Under the banner of VCU Europa, VCU Technology already supplies patented “Vertical Composting Units”(VCUs) to 30 sites in the UK.

The systems involve the treatment of mixed organic waste – including food waste and green waste – in vertical chambers. The modular units can be easily expanded, and comply with regulations on the treatment of food waste.

Andy Hinton, co-owner of Aisla3, has been made a non-executive director at VCU since the investment.

“Proven”
Mr Hinton said: “VCU is a proven business that has developed a highly efficient and attractive waste management solution, and our investment will assist their expansion and delivery of the product to an expanding market.

“The funds injected into the venture will allow increased production and we will be actively involved in assisting the business in generating new contracts in the UK and further a field.”

Tony Gledhill, chairman of VCU, complimented Aisla3 for its knowledge of the waste management sector.

He said: “Ailsa3 was approached as potential investors specifically to bring to the company a greater depth of understanding of the UK waste industry.”

“Given Ailsa3's experience in building and operating waste businesses, we have no doubt they will make excellent investment partners as VCU Technology continues its progress as the leading in-vessel composting equipment providers in the UK”