Reconomy, the UK’s leading provider of outsourced waste management and recycling services has today announced the acquisition of Valpak Holdings Limited (“Valpak”), the UK’s largest environmental compliance solutions provider, for an undisclosed figure.
Founded in 1997 and based in Stratford-upon-Avon, Valpak provides environmental consultancy, waste management solutions and data management services to over 4,000 UK customers. The company specialises in helping businesses achieve environmental compliance, maximise cost savings and improve their environmental credentials in line with government legislation. Valpak services include the disposal of packaging, electrical equipment, batteries, hazardous materials and chemical substances, among other forms of waste and recycling,
This is the third business acquisition announced by Reconomy in 2018, and follows that of waste brokerage business, Waste Check, and waste consultancy specialists, Helistrat. Valpak will continue to operate as a separate business and brand within the Reconomy Group of companies. By continuing to combine acquisition and organic business growth, the Reconomy Group’s combined revenue for the end of the 18/19 financial year is forecast to exceed £250m.
The timing of this latest acquisition is particularly pertinent following yesterday’s publishing of a government paper outlining a new resource and waste strategy for England. The strategy places a far greater emphasis on businesses being able to deliver higher recycling targets and improve transparency through an increased focus on waste data and digital recording.
With the waste industry long-establishing a reputation for being traditionalist in its business approaches, both Reconomy and Valpak share a commitment to tech-enablement. In 2018 Reconomy launched a suite of smartphone apps for use by customers, suppliers and its own auditing personnel. The ongoing digitalisation of Reconomy’s numerous systems and processes is setting a high benchmark which has the potential to benefit and influence the entire waste industry, as we move towards the compulsory electronic tagging of waste.
Commenting on the acquisition, Chief Executive of Reconomy, Paul Cox, said: “Our vision is to bring about change to the waste industry by pioneering new technologies and methodologies that make the process of dealing with waste far easier. This goal is shared by everyone at Valpak, so the ethos of our two companies is already very closely aligned. The acquisition of Valpak is another important step in Reconomy’s journey, enabling us to further broaden our sustainability and waste management offering. In 2019 Reconomy celebrates its 25th year of being in business and this acquisition is the first step in what promises to be an exciting twelve months for the company.”
Steve Gough, Chief Executive of Valpak, said: “With the launch of the government’s resource and waste strategy, the packaging and recycling industries are set for positive change. Valpak has seen significant growth and expansion over the past six years. As part of the Reconomy Group, I am confident we will be well-positioned to address that change and better support our members’ needs. At the same time, we will benefit from being part of a larger group with a wide range of services, similar culture and shared objectives in excellence and pioneering the industry.”
Reconomy was advised by: Eversheds, KPMG. Valpak was advised by: Clearwater International, PwC, Shoosmiths