BGF, one of the largest and most experienced growth capital investors in the UK and Ireland, has completed a successful exit from Aberdeenshire-headquartered Keenan Recycling.
Founded in 2013, Keenan Recycling provides food waste collection services for businesses, waste management companies and councils, as well as operating a composting and biofuel facility in Aberdeen.
BGF invested £3.5m in the company in 2015, and supported the business as it scaled from a single depot in Aberdeen to 17 depots covering the entire UK.
The business now collects over 50,000 tonnes of food waste a year, diverts this waste from landfill and achieves large carbon emission savings for its customers.
The exit comes after Keenan Recycling was acquired by Biffa, the UK leader in sustainable waste management, which delivered 2.4x money multiple (MM) return on the original BGF investment.
The acquisition is set to improve Biffa’s capabilities in food waste collection services ahead of the implementation of the forthcoming Simpler Recycling legislation in England, and it will continue to invest in, and drive, Keenan Recycling’s ongoing growth across the UK.
Investor Richard Pugh led the original investment for BGF and joined the company’s board, supporting Grant Keenan and the management team for the duration of the partnership.
Richard Pugh, Investor at BGF, said: “We’ve enjoyed working with Grant and the team over the last nine years, during which we have seen how impactful a committed entrepreneur can be with the right investment and long-term, supportive partner.
“As a Scottish company that is now a leader in its field right across the UK, this represents another success for one of Scotland’s many strong family businesses.
“The acquisition by Biffa recognises both the market position the business has built, and its reputation for quality. We are confident that this deal represents a positive outcome for all parties involved, and wish Grant and the whole team the best for this important next step.”
Grant Keenan, CEO of Keenan Recycling, said: “This is an exciting new chapter for Keenan Recycling, after a long period of growth that BGF was instrumental in supporting with investment, but also with advice, patience and good humour.
“We liked the BGF approach from day one, they really took the time to get to know us and when I spoke to others in Scotland they’d invested in, everyone said they’d had a good experience. I’d happily pass on the same to anyone who asks me now.”
Will Griffith, Director & Head of UK Waste & Recycling M&A at KPMG, said: “It has been a pleasure to advise BGF and the Keenan Recycling shareholders on what is a fantastic outcome for all concerned.
“Keenan Recycling has found a long-term home to flourish and Biffa has acquired a leading organics recycling and food waste collections business.”
