BGF completes successful exit from Keenan Recycling

BGF has completed a successful exit from Aberdeenshire-headquartered Keenan Recycling. Established in 2003, Keenan Recycling provides food waste collection services for businesses, waste management companies, and councils, as well as operating a composting and biofuel facility in Aberdeen.

BGF invested £3.5 million in Keenan Recycling in 2015, and supported the business, as it scaled from a single depot in Aberdeen to 21 depots, covering the entire UK. It now collects ~56,000 tonnes of food waste a year and operates a fleet of 80 state of the art collection vehicles. These vehicles use industry-leading route optimisation software and bin weighing capabilities to minimise carbon emissions.

The exit comes after Keenan Recycling was acquired by Biffa, the UK leader in sustainable waste management, which delivered a 2.4x money multiple (MM) return on the original BGF investment.

This acquisition is set to improve Biffa’s capabilities in food waste collection services, ahead of the implementation of the forthcoming Simpler Recycling legislation in England. And it will complement Biffa’s end-to-end food waste solution, which spans surplus redistribution through to the collection and recycling of food waste via anaerobic digestion (a sustainable process that generates liquid fertiliser and biogas).

Investor Richard Pugh led the original investment for BGF and joined the company’s board, supporting CEO Grant Keenan and the management team for the duration of the partnership.

Richard Pugh, Investor at BGF, said: “We’ve enjoyed working with Grant and the team over the last nine years, during which, we have seen how impactful a committed entrepreneur can be, with the right investment and long-term, supportive partner. As a Scottish company that is now a leader in its field right across the UK, this represents another success for one of Scotland’s many strong family businesses.

“The acquisition by Biffa recognises both the market position the business has built and its reputation for quality. We are confident that this deal represents a positive outcome for all parties involved, and wish Grant and the whole team the best for this important next step.”

Will Griffith, Director & Head of UK Waste & Recycling M&A at KPMG, added: “It has been a pleasure to advise BGF and the Keenan Recycling shareholders on what is a fantastic outcome for all concerned. Keenan Recycling has found a long-term home to flourish, and Biffa has acquired a leading organics recycling and food waste collections business.”