A thriving North East recycling business is set to expand further after receiving a £7.5m cash injection.
The Hartlepool-headquartered J&B Recycling received the growth capital investment from Business Growth Fund (BGF), an independent company established to help Britain’s growing businesses.
J&B, which employs 175 people and has an annual turnover of around £10m, currently operates from two recycling facilities in Hartlepool and a waste transfer station in Middlesbrough.
BGF’s funds will enable it to expand the latter while developing an additional recycling facility in Middlesbrough for treating commercial waste, creating further new jobs across Teesside and helping make the firm a major national player in the waste recycling sector.
Vikki Jackson-Smith, managing director of J&B, said: “Together with our advisers, Cavu Corporate Finance, we reviewed the UK development capital market for investment and I was delighted with the substantial interest that our plans created amongst the funding community.
“We believe BGF will be the ideal partner for us – they take a long term view, are experienced investors in family businesses and the chemistry felt right from the very first meeting.
“It is great to have them on board.”
The investment, BGF’s first in Teesside, comes after the firm put £8m into the Durham-based community pubs estate, Wear Inns.
The team working with J&B was led by investment director Richard Taylor, with support from investment manager Chris Boyes.
Mr Taylor said: “J&B has developed from a small business into a reputable, established ethical recycling and waste management company, with an extremely strong family management team.
“Vikki is an excellent role model for aspiring female entrepreneurs, as she has built a business with longevity and the prospects for excellent future growth.
“We are also pleased to extend our portfolio into Teesside, increasing our investment momentum in the North East and offering much needed additional infrastructure into the local community.
“The creation of jobs will help the areas of Hartlepool and Middlesbrough, and we are looking forward to helping the company to develop further in the coming months.”
Following the investment, J&B’s current non-executive director Ross Smith will take on the role of non-executive chairman. Mr Smith was formerly chief executive of the 3i-backed MDC technology and chairman of CSL Dualcom.
Ms Smith-Jackson added: “J&B has always viewed itself as an innovator within the industry, from our early days of recycling glass bottles to the development of our state-of-the-art materials recycling facility.
“This investment will further enhance our reputation as we look to collect, recover and recycle more and more waste to put to new uses.”