IT recycling company Vyta Group has acquired UK peer FGD in Essex following €13m private equity capital investment from MML Growth Capital Partners.
MML said its investment will give it a minority shareholding in the Vyta.
The MML funding comes from the MML Growth Capital Partners Ireland Fund II, a €145m fund supported by British Business Investments, AIB and a number of international institutional investors.
The company’s existing shareholders and new shareholders – consisting of four members of the Vyta senior management team and the FGD founders – are also investing.
MML investment leads Neil McGowan and Christopher Walsh will join the Vyta Group board. They said they will work alongside the executive team to support the group’s M&A strategy.
In Association with
Last year MML bought into Natural World Products, also in Northern Ireland.
FGD’s 37 employees, including co-founders Leigh Medhurst and Daniel Elson, are joining Vyta, increasing the Vyta headcount to c.120 people in Belfast, Dublin and Essex.
Leigh Medhurst is taking on the role of Chief Development Officer, and Daniel Elson is now Vyta’s Chief Technology Officer.
Vyta, based in Newtownabbey, said its strategy is to increase market share organically while also acquiring like-minded IT disposal companies.
The company expects to report revenue of c.€19 in the year to May 2022, up from €8m in the previous financial year.
Vyta’s brands include DiskShred, which provides on-site hard drive and media shredding across the UK and Europe; and RefreshedByUs.com, a premium reseller of refurbished IT equipment.
Neil McGowan commented: “The European ITAD sector is a fast-growing but fragmented market that presents a significant opportunity for Vyta Group.
“We are impressed by the company’s management team and their track record in growing the business to date, which, together with MML’s investment and support, positions Vyta optimally as a consolidator in the market.
“At MML, we are committed to investing in the circular economy. By promoting reuse over recycling, Vyta Group enables thousands of tonnes of carbon dioxide savings per year, helping some of the world’s largest enterprises to become more sustainable and contribute to a greener future for all of us.”
Carson McDowell and Gore & Grimes acted as legal advisers to MML. HNH provided financial and tax due diligence, Armstrong TS provided commercial due diligence, SOL Environmental provided environmental due diligence, Innovu provided insurance due diligence, Leading Resolutions provided IT due diligence, and PwC provided tax advice.
Tughans acted as legal advisers to Vyta Group. PwC acted as corporate finance advisers, while Gray + Press provided tax advice.
