Magma advises on the sale of Envirokey Limited to Reconomy
27 November 2023
Magma is pleased to have advised the shareholders of Envirokey on their sale to leading international circular economy specialist, Reconomy.
Envirokey’s subsidiaries, Smart Comply – a packaging compliance scheme with a membership that includes UK retailers, manufacturers and brand owners, and Envirovert – an award-winning Packaging Recovery Notes (PRNs/PERNs) brokerage business will join Reconomy’s Comply division.
Guy Wakeley, Chief Executive at Reconomy, commented: “We are delighted to welcome our new Envirokey customers and colleagues to Reconomy. Extended Producer Responsibility schemes are an important part of the UK’s recycling strategy and helping brands and retailers comply with their obligations is a central part of our growth strategy”.
Danny O’Connor, Managing Director of Envirokey, said: “This is a very exciting time for everyone at Smart Comply and Envirovert. This transaction will allow us to move to our next stage of development, bringing further investment to our business and broadening the range of services we are able to offer our customers through Reconomy’s wider expertise.”
He added “I would express my gratitude to Shaf Bheda, Chris Matthews and the wider Magma team for their invaluable support during the transaction. Their unwavering commitment to excellence and strategic expertise played a pivotal role in achieving a successful outcome.
From the initial meeting to the final negotiations, Magma demonstrated a profound understanding of the market dynamics and a keen insight into the intricacies of the M&A process. The team worked tirelessly to ensure that every aspect of the transaction was meticulously managed, resulting in a seamless and efficient sale. “
Shaf Bheda commented, “Alongside Chris Matthews and the Magma team, it was a pleasure to have advised Danny and his fellow shareholders on the sale of Envirokey, one of the leading packaging recovery note businesses in the UK. Having sold a business to Reconomy in the recent past, we know first-hand how Reconomy supports the businesses it acquires to make transformational change. We wish Danny and Reconomy every success in the future.”
Advisors to Envirokey were Magma (corporate finance) Howes Percival (legal) and Syon Tax (transactional tax). KPMG and Irwin Mitchell acted for Reconomy.
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