MML takes £11 million stake in fast-growing IT recycling firm Vyta
PRIVATE equity firm MML Growth Capital Ireland has bought a minority stake in Co Antrim IT recycling company Vyta for €13 million (£11m).
The deal comes as Vyta, which operates from Mallusk and Dublin, confirmed the acquisition of Essex-based IT disposal company FGD.
Originally set-up in 2001 as AMI, Vyta specializes in the secure disposal and recycling of IT equipment. It said the takeover makes it one of the largest IT asset disposal (ITAD)s companies in Ireland and the UK.
Some 37 staff have been absorbed into the Vyta fold, taking its headcount to over 120.
FGD founders Leigh Medhurst and Daniel Elson have taken on senior roles within in the restructured group.
Vyta said its four existing shareholders and the FGD co-founders had made “significant investments” as part of a new growth strategy which is expected to involve further acquisitions as part of a market consolidation strategy.
The company expects revenues to hit £16m this year, up 130 per cent up on last year’s £7m, with plans to reach £30m by 2026.
Founder and chief executive, Philip McMichael, said: “This acquisition makes us a stronger company in a highly competitive market.
“Our expanded team will be immensely valuable to us as we pursue our ambitious growth plans.”
MML’s buy-in has been funded by 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 same fund was used to acquire Co Antrim recycling company Natural World Products in a £20m deal last August.
Philip McMichael said: “MML not only share our growth ambitions but also our sustainability ethos and dedication to growing the circular economy.
“The funding, along with their knowledge and experience, will be vital to us as we embark on our strategy to consolidate the UK and Europe’s ITAD market.”
Neil McGowan, co-head of investments at MML Growth Capital Partners Ireland, said: “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.”