Keenan Recycling has continued its expansion across the UK with the acquisition of business from Northamptonshire firm JNL Waste Services.
Aberdeen-based Keenan said its swoop for JNL’s food waste wheelie bin collection service set it up nicely for further growth in 2022.
It declined to say how much it paid for the English business, which it described as a “strong fit”.
The acquisition includes new trucks, and is expected to strengthen the company’s operations in the Midlands, Northamptonshire and East Anglia.
Keenan, which moved its HQ from New Deer to Bridge of Don in 2018, is targeting a five-fold-plus increase in revenue over two years after achieving the milestone of UK-wide coverage last autumn.
Last year also saw it invest more than £4 million in new trucks, and add six depots, including sites in London, Exeter and Manchester, to its fast-growing network.
And it more than doubled its headcount to about 120 employees across Britain.
In addition, the firm announced a £5m deal extending its contract to recycle all of Aberdeen’s household garden and food waste.
Growing reputation
Revenue is expected to rocket to £65m within two years, from £12m, while the UK-wide payroll is forecast to soar to around 400.
Hailing the deal with JNL – owned by Jon and Natalie Lee – as another key moment in its 19-year history, Keenan revealed its growing reputation throughout the UK was producing numerous acquisition opportunities.
Managing director Grant Keenan said: “Jon and Natalie have built a fantastic company over the years.
What’s your new year’s resolution for 2022? Why not pledge to help the environment!
By recycling your food waste, you stop it from emitting harmful gasses into the atmosphere, and you produce renewable energy too!https://t.co/E14yS2DXbQ pic.twitter.com/EbFzJIrwYd
— Keenan Recycling (@keenanrecycling) December 29, 2021
“The wheelie bin arm of their business was a naturally strong fit for Keenan.
“Over the past 18 months we’ve made significant investments into England which have allowed us to serve a wealth of new customers, including colleges, restaurants and fast food chains, as businesses increasingly review their carbon footprint, and realise how food waste recycling can support sustainability goals.”
He added: “Since we achieved UK wide coverage last year we are starting to see numerous acquisition opportunities as other waste management firms believe they could benefit by becoming part of Keenan Recycling”
Mr Lee said: “Keenan Recycling has a fantastic reputation in the industry, so we know our customers will be in good hands.
“The sale will allow us to focus on bulk food waste haulage and the funds from the deal will be used to expand our articulated fleet.”
The wheelie bin arm of their business was a naturally strong fit for Keenan.”
Grant Keenan, MD, Keenan Recycling.
Incorporated in 2003, Keenan is the result of a farm diversification project and was initially a garden composting business,
The company launched commercial food waste collection services in Scotland in 2009 before entering the market south of the border in 2018.
It is now Scotland’s largest food waste collection company.
The firm hopes to cash in on an expected surge in demand after mandatory food waste collections are introduced across England in 2023.
Expansion in recent years, including the move into England, follows a £2.2m investment from BGF – formerly the Business Growth Fund – in 2015.