Ireland IT recycling services company Vyta Group has acquired Essex-based IT disposal company FGD, following an £11m investment from MML Growth Capital Partners Ireland.
The investment from MML will give it a minority shareholding in the expanded group.
Existing shareholders and new shareholders – consisting of four members of the Vyta senior management team and the FGD founders – have also made “significant investments”, to help the bigger entity acquire other firms across the UK and continental Europe, said MML.
FGD will rebrand under the Vyta Group name. Its 37 employees, including co-founders Leigh Medhurst and Daniel Elson, will join the group, increasing the Vyta team to over 120 across offices in Belfast, Dublin and Essex.
Medhurst is taking on the role of chief development officer, and Elson is now Vyta’s chief technology officer.
After the deal, Vyta now expects revenues to reach £16m by the end of its financial year ending May 31, 2022, up from £7m in the previous financial year. It estimates that it will see sales jump to £30m by May 2026.
Vyta’s main business is complemented by two subsidiary brands, including DiskShred, providing secure on-site hard drive and media shredding; and RefreshedByUs.com, a reseller of refurbished IT equipment.
Philip McMichael, co-founder and CEO of Vyta Group, along with the Vyta management team, remain the largest shareholders. Meanwhile, MML investment leads Neil McGowan and Christopher Walsh will join the Vyta Group board. They will work alongside the executive team to support the group’s M&A strategy.
McMichael said: “This acquisition makes us a stronger company in a highly competitive market. Our expanded team will be immensely valuable to us as we pursue our ambitious growth plans. We look forward to achieving even greater things together.”
MML’s McGowan added: “The European ITAD sector is a fast-growing but fragmented market that presents a significant opportunity for Vyta Group. We are impressed by the company’s management team and their track record in growing the business to date, which, together with MML’s investment and support, positions Vyta optimally as a consolidator in the market.”
