ERG – which is also based in the Midlands – describes itself as one of the UK’s largest privately owned hazardous waste management companies, and its group consists of seven companies in the sector, including Chemtech Waste, Envirosol, Hazchem and Safeguard.
The Red Industries acquisition includes ERG’s waste facilities in Brownhill and Dudley as well as its laboratory, offices, employees, and customer base. ERG will continue to operate as a wholly owned subsidiary under the branding of the Red Group following the transaction.
Red industries
Red Industries was initially set up in 2006, operating three sites in Staffordshire – a head office, waste treatment and transfer station and non-hazardous landfill site.
ERG has been in operation since 1996, originally trading as a waste broker, before the development of its facilities to handle hazardous and non-hazardous waste.
“The acquisition of ERG complements Red’s existing waste management activities and secures more regional and national coverage in line with our growth strategy.”
Adam Share
chief executive and founder of Red Industries
According to the company, the ERG acquisition “strengthens Red’s position in the marketplace” by broadening its customer reach and service offering, as well as adding additional waste management facilities, a larger client support team, and fleet of bespoke vehicles.
Commenting on the announcement Adam Share, chief executive and founder of Red Industries, said: “We are proud to incorporate ERG into our business. It was clear from ongoing discussions that our companies are well matched and aligned in terms of strategy, ethos, and focus for the future.
“The acquisition of ERG complements Red’s existing waste management activities and secures more regional and national coverage in line with our growth strategy.”
Funding
A £39m funding package from both the BGF (formally the Business Growth Fund), which invests in start-up businesses, and HSBC, has supported Red Industries in the transaction.
Alex Sleeth, a former chief executive of Environmental Scientifics Group will join Red Industries as non-executive chairman.
Aaron Baker, an investor at BGF who also joins the board of Red Industries, commented: “We’re thrilled to be partnering with Red at such an exciting stage of their journey. The team have built an exceptional business over the last few years, and ERG is a great addition to the group.
“We’re looking forward to helping Red realise their ambitious growth plans over the next few years and continue to innovate in finding sustainable solutions for their clients.”
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