Vyta is a leader in the fast-growing IT asset disposition (ITAD) market and is one of the most accredited ITAD providers in Ireland and the UK. The acquisition of Essex-based IT disposal company FGD is the first in Vyta’s market consolidation strategy as it aims to increase its market share organically while also acquiring like-minded IT disposal companies.
The FGD acquisition complements Vyta’s existing services, with a strong focus on customer service, sustainability, and security. FGD customers will benefit from Vyta’s scale, extended range of services and security leadership in a market where growth is driven by increasingly stringent data regulations, such as GDPR, as well as sustainability concerns and obligations across all sectors.
MML Ireland’s partnership investment will be essential to support the Groups continued growth plans, expanding its presence and services in Ireland, the UK and elsewhere in Europe, both organically and through further acquisitions.
Neil McGowan, Partner and Co-head of Investments, MML Ireland, comments:
“The European ITAD sector is a fast-growing, but fragmented market that presents a significant opportunity for Vyta Group. We are impressed by the company’s management team and their track record in growing the business to date, which, together with MML’s investment and support, positions Vyta optimally as a consolidator in the market.
At MML, we are committed to investing in the circular economy. By promoting reuse over recycling, Vyta Group enables thousands of tonnes of carbon dioxide savings per year; helping some of the world’s largest enterprises to become more sustainable and contribute to a greener future for all of us. We are very excited to join Vyta Group on this journey to promote corporate sustainability and pursue rapid expansion.”
Philip McMichael, Founder and CEO, Vyta, said:
“This is an exciting period of growth for Vyta Group, and we are delighted to welcome our new colleagues to the team. At Vyta, we adhere to the most stringent industry standards while maintaining our commitment to having the best customer service in our industry. Therefore, it is important that we acquire like-minded ITAD companies, like FGD, who reflect our principles and exacting standards, ensuring that Vyta Group remains a company that our people are proud to be a part of.
This acquisition makes us a stronger company in a highly competitive market. Our expanded team will be immensely valuable to us as we pursue our ambitious growth plans. We greatly admire their work to date and look forward to achieving even greater things together.
MML not only share our growth ambitions but also our sustainability ethos and dedication to growing the circular economy. The funding, along with their knowledge and experience, will be vital to us as we embark on our strategy to consolidate the UK and Europe’s ITAD market.
I am extremely proud of our business and our team, four of whom have made investments in the company to become shareholders. It reflects their dedication and belief in what we do. That commitment puts us in a very strong position, and I’m excited to continue to work together as we aim to become the best-in-class ITAD services provider in Europe.”
FGD will rebrand under the Vyta Group name. Its 37 employees, including co-founders Leigh Medhurst and Daniel Elson, will join the Group, increasing the Vyta team to over 120 across its expanded network of offices in Belfast, Dublin and Essex. It is now one of the largest IT asset disposal companies in Ireland and the UK. Leigh Medhurst is taking on the role of Chief Development Officer, and Daniel Elson is now Vyta’s Chief Technology Officer.
Leigh Medhurst, Chief Development Officer, Vyta Group, said:
“We are very excited to join the Vyta team. Over our 11 years in business, we have achieved immense growth year on year, and we look forward to continuing on this growth path as part of the Vyta team. Our priority, as always, is our customers, and we are looking forward to working closely with them and providing the same level of care and services that they are used to.”
Vyta estimates that the addressable market for its services in Ireland and the UK is in excess of £300m, with further market opportunities in Europe. The company now expects revenues to reach £16m by the end of its financial year ending 31st May 2022, up from £7m in the previous financial year. Vyta expects to reach revenues of £30m by May 2026.
MML investment leads, Neil McGowan and Christopher Walsh, will join the Vyta Group board. They will work alongside the executive team to support the group’s M&A strategy.
Carson McDowell and Gore Grimes acted as legal advisers to MML. HNH provided financial and tax due diligence, Armstrong TS provided commercial due diligence, SOL Environmental provided environmental due diligence, Innovu provided insurance due diligence, Leading Resolutions provided IT due diligence, and PwC provided tax advice.
Tughans acted as legal advisers to Vyta Group. PwC acted as Corporate Finance advisers, while Gray + Press provided tax advice.