Recycling Lives accelerates growth plans by acquiring John R Adam and Sons Ltd with THCP’s financial support

Three Hills Capital Partners (“THCP”) is pleased to announce that portfolio company Recycling Lives (“RL”) has acquired John R Adam and Sons Ltd (“JRA&S”), a Glasgow-based recycler and exporter of ferrous and non-ferrous metals, for an undisclosed sum. Funding was provided by THCP to complete the transaction. The existing RL management team will continue to run the operation as part of the new Recycling Lives Group (“the Group”), which is now expected to reach £300 million of turnover with over 550 staff.

Founded in 2008 with social value at its core, RL continues to expand and lead the charge in the next wave of circular economy businesses. The company has built a reputation in recent years for environmental innovation in recycling, most notably pioneering a ground-breaking process that diverts automotive shredder waste away from landfill, instead using it create green energy to power its plants. This accretive bolt-on further enhances RL’s status in the sector and sends a clear message on its growth expectations.

JRA&S is capable of processing 600 metric tonnes of steel a day and can load vessels with up to 4,000 tonnes of recycled metal at its deep-water berth. Situated in Glasgow’s King George V Dock, the acquisition will take the Group’s geographical footprint to 23 locations across the UK. This will provide further geographic diversification for RL, as well providing greater access to the export market due to JRA&S’s port location, allowing for higher margin bulk shipping. It will also increase RL’s network of facilities, in turn increasing volume, while several large-scale operational synergies will drive profitability at group level. Post-acquisition, the Group is planning a substantial investment, which will see a new plant and equipment installed in Scotland to increase capacity and create additional jobs.

Andrew Lawley, Operating Partner and THCP Investment Committee member, commented:

“The complementary nature of the two businesses will allow both RL and JRA&S to take advantage of each other’s respective customer bases and operations, making the acquisition a perfect strategic fit. In addition, JRA&S has a strong social and environmental ethos, which is a key pillar of RL’s business model. The acquisition will allow RL to unlock its full growth potential, cementing its position as a market leader in the UK.”

Andrew Hodgson, Executive Chairman of Recycling Lives, said:

“This acquisition fits into our longer-term plans of being a world leading circular economy business. This includes increasing high-grade quality recycled feedstock to produce more green steel through our world class processes, which dovetails with Scottish government policy.”

Jake Adam, Managing Director at Recycling Lives, said:

“The parallels between our two companies makes this a great fit. When you look at what we do, the culture and the importance that community has to both businesses, it’s clear just how complimentary our companies are.”