Deal announcement – Redeem Holdings
11 September 2014
Connection Capital has led a £15 million investment to support the growth of mobile and electronics recommerce specialist Redeem Holdings Ltd. (“Redeem”).
- Investment date: September 2014
- Investment from clients of Connection Capital: £5m
- Advisers to Connection Capital: Gateley (legal),
Latitude (commercial due diligence),
EY (financial due diligence)
- Corporate finance advisor to Redeem: HMT
Redeem, a global leader in recommerce (recycling and take-back management) of mobile and electronic products is already the UK’s largest mobile recycling company. Revenue has grown at nearly 50% per annum compound over the last four years and is expected to reach £90 million in the current financial year. With headquarters in the UK, Redeem currently operates in 23 countries on three continents with regional offices in Madrid, Sweden, Estonia, Dubai and Hong Kong.
- Mobile Network Operators (MNOs)
- directly from consumers through its internet-based business: Envirofone
- directly from businesses across Europe which are serviced by dedicated telesales teams
95% of the traded-in devices handled by Redeem are data wiped, refurbished and resold to a growing number of end markets which include European phone retailers, mobile phone retail shops, insurance companies looking to replace phones on a like for like basis and developing countries where consumers want the latest products but are unable to afford new devices. The remaining 5% are completely recycled, with virtually zero waste going to landfill. Clients of Connection Capital invested £5 million of equity alongside Praesidian Capital Europe which is providing £10 million of growth capital and debt. The funds will be applied to support Redeem’s international organic growth and potential acquisitions ahead of a possible IPO in 2015.
“Redeem is a great business with a high calibre management team led by chairman Trevor Bayley and CEO, Claes Svensson, formerly with Sony Ericsson. Redeem has gained a strong foothold in the huge, yet still fast growing, mobile phone recommerce market and the business has multiple opportunities to expand, particularly overseas. We anticipate strong returns for our clients.” - Julian Carr, Partner
If you are interested in receiving more information about future investment opportunities and are not yet a client of Connection Capital, please contact Steve Wilson.