A £50 million turnover Leicester recycling business has been bought by a bigger competitor.
Eurokey Recycling has been acquired by Telford-based Reconomy Group, creating a business with an annual turnover of some £550 million.
Eurokey has been providing waste services since 1995 – from collections through to full recycling – and has clients in the UK and abroad.
Reconomy specialises in providing outsourced services to the waste management and environmental sectors.
Its services range from skip hire to office recycling, wheelie bins and containers, hazardous and confidential waste disposal, and site clearance work.
It has acquired a number of businesses over the years, and was itself bought by EMK Capital LLP in 2017.
Eurokey was advised by Will Lodder and Shaf Bheda of Magma Corporate Finance, with supporting tax advice provided by Magma’s Jon Kicks.
Jahid Ali and Brigitta Naunton of Howes Percival led the legal advisory team.
Reconomy received legal advice from Irwin Mitchell and financial due diligence support from KPMG.
Reconomy chief executive Paul Cox, said “We’re thrilled to announce the acquisition of Eurokey and welcome their team into the Reconomy family.”
John Dhillon, managing director of Eurokey, said “We’re delighted to become part of the Reconomy Group.
“This deal represents an exciting step in the development of Eurokey with a company that mirrors our own values.
“I would like to extend my thanks to Will, Shaf and the team at Magma Corporate Finance who, alongside Jahid at Howes Percival, guided us expertly through the transactional maze and helped to secure a strong succession for Eurokey. Both Magma and Howes Percival worked tirelessly, positively and proactively throughout and their support was invaluable.”
Will Lodder of Magma Corporate Finance added: “It has been a pleasure to support John and Eurokey on such a great transition. With such a great cultural fit between Reconomy and Eurokey, the business has an exciting period ahead.”
Jahid Ali, of Howes Percival, said: “One of those deals you remember and talk about for a long time.
“Really enjoyed working with John and Belinder Dhillon on the sale of their brilliant business, Eurokey.
“The business has gone from strength to strength over the years and it’s no wonder there were a lot of interested parties. The PE-backed Reconomy group proposal was the perfect fit for them.”