The owner of Firmus Energy has announced the joint acquisition of Belfast-based waste business RiverRidge.
Funds controlled by London-based Equitix Investment Management and Luxembourg's Cube Infrastructure Managers, have bought out BGF, formerly the Business Growth Fund, which originally bought into the waste firm in 2016.
The acquisition was formally approved by the European Commission earlier this month under the EU Merger Regulation.
Equitix is already a major player in the north, investing around £500 million in ventures including Firmus Energy and Granville Eco Park in Dungannon.
Cube’s portfolio spans an extensive range of transport and energy companies across Europe.
Originally set up as Coleraine Skip Hire and Recycling, RiverRidge was acquired in 2011 by Zimbabwean Brett Ross and rebranded. Since then the company has significantly expanded into a major waste recovery operation, employing 280 people across five sites in the north.
BGF pumped £16m into since business over the past seven years, with a number of acquisitions during that time.
RiverRidge now serves seven of the north’s 11 councils and has more than 5,500 commercial clients.
Last year the company treated around 400,000 tonnes of ‘co-mingled’ waste, and generated £60 million in revenue.
"RiverRidge has grown from humble beginnings in 2011 to a company in 2023 which is at the forefront of waste treatment technology,” said Brett Ross, who remains chief executive.
“We have been true to the vision and values of the group over this period and believe that today’s announcement is an endorsement of the hard work from our team as well as the strategy chosen to revolutionise the sector.”
Equitix has already partnered with RiverRidge as an investor in the £109m Full Circle Generation (FCG) waste facility on the Belfast Harbour estate.
The London investor’s chief executive, Hugh Crossley said: “Equitix has known and had excellent collaboration with RiverRidge for near to 10 years. We have a huge respect for the management team and are very pleased to extend this relationship by acquiring a stake in the company.
“This also allows us to proudly increase our commitment and presence to Northern Ireland. With the RiverRidge management team and our partners Cube we expect to invest in and effectively grow the business over the coming years.”
Saket Trivedi, partner of Cube Infrastructure Managers, added: “The investment in RiverRidge Holdings represents a unique opportunity for Cube to acquire an essential infrastructure asset in a new geographic location, with the embedded opportunity to pivot towards the generation of renewable energy from waste.”
Graham Clarke, investor at BGF, said: “We’re delighted to announce a successful exit from RiverRidge, following a fruitful six-year partnership with the business.
"RiverRidge was the second company backed by BGF in Northern Ireland and since 2016, our investment has helped the company to expand its operations both organically and via acquisition, develop state-of-the-art recycling infrastructure and build out the top tier management team.
“It's been a privilege to be part of the company’s growth journey, and we wish Brett and the entire RiverRidge team all the best on the next exciting stage of growth.”
Cube and Equitix have been advised by Eversheds Sutherland and PwC, while RiverRidge and BGF were advised by Carson McDowell and KPMG.