Magma Corporate Finance is pleased to have advised on the sale of Leicester-based Eurokey Recycling to Telford-based Reconomy Group.

Founded in 1995, Eurokey provides commodity trading and reprocessing services to commercial customers in the UK and internationally, helping clients meet their demands for the supply of recycled material in manufacturing and production.

Reconomy is the UK-based leader in the provision of outsourced services to the waste management and environmental service sectors. With the addition of Eurokey, the Reconomy Group’s annualised turnover is in excess of £550m.

Very much a Midlands transaction, Eurokey were advised by Will Lodder and Shaf Bheda of Magma Corporate Finance acting as lead advisors, with supporting tax advice provided by Magma’s Jon Kicks. Jahid Ali and Brigitta Naunton of Howes Percival led the legal advisory team. Reconomy received legal advice from Irwin Mitchell and financial DD support from KPMG.

Reconomy’s CEO, Paul Cox, said “We’re thrilled to announce the acquisition of Eurokey and welcome their team into the Reconomy family.

John Dhillon, Managing Director of Eurokey, said “We’re delighted to become part of the Reconomy Group. This deal represents an exciting step in the development of Eurokey with a company that mirrors our own values.

He added “I would like to extend my thanks to Will, Shaf and the team at Magma Corporate Finance who, alongside Jahid at Howes Percival, guided us expertly through the transactional maze and helped to secure a strong succession for Eurokey. Both Magma and Howes Percival worked tirelessly, positively and proactively throughout and their support was invaluable.”

Will Lodder of Magma Corporate Finance commented: “It has been a pleasure to support John and Eurokey on such a great transition. With such a great cultural fit between Reconomy and Eurokey, the business has an exciting period ahead”.

Jahid Ali, Howes Percival, added: “One of those deals you remember and talk about for a long time. Really enjoyed working with John and Belinder Dhillon on the sale of their brilliant business, Eurokey. The business has gone from strength to strength over the years and it’s no wonder there were a lot of interested parties. The PE backed Reconomy Group proposal was the perfect fit for them.