AILSA3, the Harewood-based private venture capital fund owned by serial entrepreneurs Nick Wyatt and Andy Hinton, has sold a minority stake in automotive waste processing business Credential Environmental Ltd.
Bridges Ventures, which describes itself as a venture capital company with a social mission, has made a 4m initial investment, with a further commitment of up to 2m in exchange for a minority stake in Credential, to release funds to the shareholders and provide capital for future acquisitions.
Wendy Harrison, from law firm DLA Piper, advised Ailsa3 on the deal that adds to Bridges Ventures' portfolio of businesses with strong environmental or sustainable business objectives. Credential collects, processes and recycles used tyres and other garage waste.
Headquartered in Newton Aycliffe, County Durham, the business has sites in Breighton, near Selby, the West Midlands, the North East and Wales.
Hinton and Wyatt have made numerous investments in the waste sector following their successful MBO of medical waste company White Rose Environmental from Yorkshire Water's Bradford-based parent, Kelda.
They have grown Credential Environmental by acquisition and expansion in recent years to meet an increasing demand for the recycling of used tyres after the Landfill Directive banned the disposal of whole tyres and shredded tyres in landfills.
Mr Hinton said: "The investment by Bridges is a great boost for the business, and positions us for further growth in Credential's key markets. "Through the integration of several complementary waste businesses, we have built the market leading collector and processor of tyres.
"Demand for our services and markets for our products are growing, and so further development and acquisition capital will allow us to maintain our rate of growth."