Eco Plastics raises £6m to fund expansion

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Eco Plastics has announced that it has raised £6m to fund expansion of the business during the next 12 months.

The Hemswell-based recycling group said that Ludgate Environmental Fund and Robeco Sam Private Equity, both existing shareholders in the business, had taken part in the funding exercise.

In a statement Eco Plastics said the money would go towards “providing capital which will be dedicated to short-term added-value expansion opportunities”.

Extra working capital facilities had also been provided by the group's existing debt provider, Close Brothers, "to support growing sales revenues".

A spokesman for the company said Eco Plastics was looking at acquisition targets but that there were currently no specific plans to buy any businesses.

The £6m funding follows a £24m finance package which the group raised in July 2011, money which went into its Continuum joint venture with Coca-Cola Enterprises and which opened in May this year.

Speaking about the new money, Eco Plastics managing director Jonathan Short said the business was now ready to tackle another period of rapid growth.

“We have made huge progress over the last three years and this investment leaves us ideally positioned to continue to develop our state-of-the-art facilities and to take advantage of any other expansion opportunities that arise.”

“The fact that we have been able to raise this money in what remain financially straitened times, is a testimony to our shareholders’ on-going confidence in the company and the management team’s strategy. We look forward to continuing to grow the business with them,” he said.

Bill Weil, Ludgate Environmental Fund’s chief investment officer, said Eco Plastics met its own key investment criteria: “A proven technology with defensible, differentiable intellectual property, operating in a significant market with substantial growth potential and led by a management team that combines technical expertise with a track record of delivery.”