The deal brings together two asset-light operators focused on outsourced waste and resource management services, creating a combined group with more than 200 employees and annual revenues exceeding £60 million.
Papilo, which is headquartered in Manchester, is backed by the Palatine Impact Fund which invests in commercial businesses delivering social and environmental impact.
The acquisition of Allwood is the second transaction completed since Papilo partnered with the fund, and is described as its largest to date.
Paul Hodgkiss, CEO of Papilo, commented: “The Allwood team are hugely well-regarded in the industry and I am delighted to welcome Gavin, Darren and the wider Allwood team to Papilo.
“They bring outstanding experience, technical knowledge and from the outset, it was clear that we share a common purpose where sustainability, and the circular economy, sit at the centre of every service.”
Allwood Recycling Solutions
Allwood Recycling Solutions was founded in 2010 by Darren Wheeler and provides total waste management services nationwide, with a particular focus on the distribution and logistics sectors.
The company manages more than 150,000 tonnes of material each year.
Since 2025, the business has been led by Managing Director Gavin Ebery, who previously held the roles of commercial director and chief operating officer.
Both Ebery and Wheeler will remain with the enlarged group following completion, alongside Allwood’s existing employee base.
Ebery added: “This deal brings together two purpose-driven, like-minded businesses and I’m very excited about the opportunities it will bring to our customers and our people.
“We look forward to a new phase of growth as part of Papilo, in a market where increasing numbers of blue-chip companies are rolling out zero waste strategies.”
Investment from Palatine, Kartesia and Virgin Money
The transaction was funded through Palatine Impact II, with additional backing from investment firm Kartesia and lender Virgin Money.
Greg Holmes, Senior Investment Director at Palatine Impact Fund, explained: “This is an important strategic acquisition for Papilo, broadening our service capabilities and bringing new experience and technical knowledge into the business.
“We are delighted to have supported on Papilo’s second acquisition in the last eight months and look forward to identifying other suitable targets that will further enhance Papilo’s growth.”
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