Bridges Ventures is pleased to announce that its Bridges Venture Fund II has agreed a £5.5 million cornerstone investment in The TEG Group PLC (TEG), the AIM-listed organic waste solutions business. Following a share placing, Bridges Ventures will own 22.3% of the enlarged share capital of TEG. This investment facilitates the acquisition of Simpro Limited creating a national organic waste solutions business, as well as funding TEG’s ongoing expansion of operations.
TEG’s activities divert waste from landfill and will in future also generate renewable energy. The investment made by Bridges Ventures has enabled TEG to raise the necessary capital, during challenging public equity conditions, to acquire Simpro Ltd, the owner of six composting sites in the Midlands. This acquisition increases TEG’s operating sites to 10 in the UK, with no geographic overlap of TEG’s existing operations. Part of the £5.5 million investment will be used to fund additional sites in regeneration areas.
This is Bridges Ventures’ first investment in a public company. It will play an active role in this investment and will be represented at TEG Board level in due course. This builds on the Venture Funds strategy of investing in ambitious businesses in regeneration areas and/or the sectors of education/training, environment and health and is their second environmental deal this year.
Ian Hislop of Bridges Ventures said:
"Bridges Ventures is delighted to have made this investment to help TEG fund the acquisition of a complementary business and continue to expand. This is a first for Bridges Ventures investing in a public company and we’re excited about the extremely good fit with our focus on investing in regeneration and the environmental sector. This is a great growth story and TEG is well positioned to take advantage of the evolving waste recycling and waste-to-energy markets."
Michael Fishwick, Chief Executive of TEG said:
"We are delighted to have agreed the acquisition of Simpro and to have received the support of Bridges Ventures and our current shareholders to do so. In addition to immediate revenues and cash-flow, the acquisition brings tremendous potential for further expansion using TEG’s IVC and AD technology in the Midlands, and TEG is now a truly national business with sites and operations throughout the UK. The organic waste market continues to grow rapidly, we have a strong pipeline of projects and we expect to develop a range of further TEG facilities. We look forward to working with Bridges Ventures and we expect their expertise and presence in the waste and cleantech sectors will be very positive for the company."