In a significant development for the UK's environmental services sector, waste management specialist Papilo has completed a strategic acquisition of Midlands-based Allwood Recycling Solutions. This transaction, described as a "milestone" deal by company leadership, creates a combined business generating approximately £60 million in annual revenue and employing over 200 staff members across its operations.
Strategic Expansion in Waste Management
The acquisition represents Papilo's second major purchase since securing backing from Palatine's Impact Fund, following an initial investment that positioned the Swinton-based company for growth. The expanded group will now focus particularly on serving companies implementing ambitious zero-waste strategies, aligning with increasing corporate sustainability commitments across multiple sectors.
Combining Expertise and Experience
Allwood Recycling Solutions, founded in 2010 by Darren Wheeler and currently led by Managing Director Gavin Ebery, brings substantial expertise in distribution and logistics sector waste management to the Papilo group. The Warwick-based company processes more than 150,000 tonnes of material annually through its established operations.
Both Wheeler and Ebery will continue with the combined business alongside the entire Allwood team, ensuring continuity of service and knowledge retention. This integration creates a strengthened organisation with enhanced technical capabilities and expanded geographical reach across the Midlands and beyond.
Leadership Perspectives on the Transaction
Paul Hodgkiss, CEO of Papilo, expressed enthusiasm about the acquisition, stating: "The Allwood team are hugely well-regarded in the industry and I am delighted to welcome Gavin, Darren and the wider Allwood team to Papilo. They bring outstanding experience, technical knowledge and from the outset, it was clear that we share a common purpose where sustainability, and the circular economy, sit at the centre of every service."
Hodgkiss further emphasised the strategic importance of the deal, calling it "a milestone acquisition for the group" that will serve as "a major platform for growth" in the evolving waste management landscape.
Shared Sustainability Vision
Gavin Ebery, Managing Director of Allwood Recycling Solutions, highlighted the alignment between the two organisations, noting: "This deal brings together two purpose-driven, like-minded businesses and I'm very excited about the opportunities it will bring to our customers and our people. We look forward to a new phase of growth as part of Papilo in a market where increasing numbers of blue-chip companies are rolling out zero waste strategies."
Investment Backing and Future Prospects
Greg Holmes, Senior Investment Director at Palatine Impact Fund, provided the investor perspective, describing the acquisition as "an important strategic acquisition for Papilo" that broadens service capabilities while bringing "new experience and technical knowledge into the business."
Holmes added: "We are delighted to have supported on Papilo's second acquisition in the last eight months and look forward to identifying other suitable targets that will further enhance Papilo's growth."
Transaction Details and Advisory Support
While the specific financial terms of the deal remain undisclosed, the transaction received funding support from Palatine Impact II, Kartesia, and Virgin Money. Papilo benefited from advisory services provided by Gateley Plc (legal), Fellwood Advisory (debt advisory), Forvis Mazars (financial and tax due diligence), and Luminii Consulting (commercial due diligence).
Allwood Recycling Solutions was advised throughout the process by HNH Advisors (corporate finance) and Burges Salmon (legal), ensuring proper due diligence and transaction execution.
This acquisition reflects the ongoing consolidation within the environmental services sector as companies seek to build scale and expertise to meet growing corporate demand for comprehensive waste management solutions aligned with sustainability objectives.
