Lawrence Recycling Lands £10m Funding For Expansion

An expanding West Midland company has proved it is still possible to raise funds, despite the recession and the credit squeeze.

Lawrence Recycling and Waste Management has had a £10 million cash injection to help it complete the jobs-spinning development of Europe’s largest materials recycling facility at Kidderminster.

Aberdeen Asset Managers Growth Capital (AAMGC), Barclays Bank, and Advantage Transition Bridge Fund supported the deal.

AAMGC has taken a significant minority stake in the company, in a deal that was originated by Birmingham-based Orbis Partners, who also invested into the equity of the business.

The new facility is expected to open its doors to customers over the next few months, creating more than 70 jobs.

Following an 18-month process to gain planning permission, Lawrence Recycling and Waste Management purchased the 209,000 sq. ft freehold of an old industrial forge in Stourport Road, Kidderminster in 2007.

Since then, the business, well known in the region for its modern fleet of red skip vehicles, has invested more than £1 million in developing the forge into a state-of-the-art recycling facility.

Once operational, it is anticipated that the site will process up to 250,000 tonnes of commercial, industrial and construction waste, which will assist the local authority in meeting its ambitious targets to decrease waste sent to landfill during the next five years.

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We are pleased to have secured the funding to complete this project, which has been our ambition now for the past four years. There is a significant opportunity to leverage the Lawrence brand with local businesses and significantly increase the amount of recycled commercial and industrial waste that is currently landfilled in its entirety.

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David Lawrence, Managing Director

“We are delighted to have secured the investment which will create jobs in the region in a business with obvious green credentials. We have no doubt that the Lawrence recycling facility will become a showpiece for other waste operators.”
Gary Ecob, Partner

“The investment by AAMGC was led by Andrew Ferguson, who will join the Lawrence board and which also includes Calvin Williams (finance director) and James Grenfell, non-executive director.”
Shah Zaki, Partner

“It has become increasingly difficult for all companies, even good ones, to attract investment in this challenging economic environment. However, this investment demonstrates that there is still financial support available for well-run businesses, with good management teams, and a strong strategy for growth. Lawrence Recycling and Waste Management has a management team that already has considerable experience in what will become an increasingly important industry to the Midlands and the rest of the UK. We look forward to working with David and his team.”
Andrew Ferguson. AAMGC

Other Midland advisers involved in the deal included HBJ Gateley Wareing, who advised the company, Freeth Cartwright, which gave legal advice to AAMGC, BDO Stoy Hayward (Birmingham), which provided financial due diligence, PMSI, commercial due diligence, RSM Bentley Jennison, tax adviser to Lawrence, Wragge & Co, tax adviser to AAMGC, and Pinsent Masons, which advised Barclays Bank plc.