New owners for Northern Ireland leading waste management firm, RiverRidge Holdings, as BGF exits

Waste management company, RiverRidge, which employs 280 staff across five sites in Northern Ireland, has been acquired in a deal which provides a successful exit for BGF.

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 Northern Ireland, investing around £500million 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.

RiverRidge operates essential infrastructure which provides services to Northern Irish communities such as the treatment and disposal of residual waste, serving seven out of 11 local authorities and over 5,500 commercial clients, for which collection services are offered to. RiverRidge is also active in the energy-from-waste space, with a minority stake in Northern Ireland’s only operating plant.

The company has ambitions to transition up the waste hierarchy, with a pipeline of development opportunities, further improving treatment options in the Northern Irish market. In 2022, the company treated over 400k tonnes of co-mingled waste, and generated £60 million in revenue.

Brett Ross, CEO of RiverRidge Holdings Ltd, said: "RiverRidge has grown from humble beginnings in 2011 to a company in 2023 which is at the forefront of waste treatment technology.

"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. We are looking forward to working with our new investors over the coming years to ensure the company continues to push the boundaries on waste to energy.”

Saket Trivedi, partner of Cube Infrastructure Managers, explained: “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. We are excited to be able to enter this journey with Equitix as our long-term partner, which will be instrumental in providing valuable expertise for the future growth of the company.”

Hugh Crossley, chief executive officer of Equitix, continued: “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. This important investment aligns with our strategic vision of working in partnership to help reduce the impact of waste on climate change, avoid unnecessary landfill disposal and provide sustainable energy to the communities which our assets serve.”

BGF, which held a minority stake in RiverRidge, introduced non-executive chairman Jim Meredith to the business and together invested £16 million in the company since its first investment in 2016.

Graham Clarke, Investor at BGF, added: “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 Holdings Limited and BGF have been advised by Carson McDowell and KPMG.