Oil recycling firm sold in Transatlantic deal
Thursday December 9, 2021
International expansion continues for Slicker Recycling
We’re pleased to have secured the future of Hydrodec of North America, a subsidiary of Hydrodec Group Plc, which has been bought out of administration by West Midlands oil recycling business Slicker Recycling (“Slicker”).
Greenbottle Re-Refining UK, the parent company of Slicker Recycling, has purchased the shares of Hydrodec Inc., which is an American Midwest-based specialist recycling business, from Hydrodec Holdco Limited as part of the transaction.
Restructuring Advisory Partners Phil Reynolds and Tony Wright were appointed Joint Administrators of Hydrodec Group PLC earlier this year and have now successfully completed the sale of the Ohio-based business to Slicker, which specialises in the collection and recycling of waste oils and commercial garage waste, for an undisclosed sum.
Both firms collect and recycle different kinds of used oils, with Hydrodec specialising in transformer oil commonly used in electrical infrastructure, and the complex deal sees Slicker take on Hydrodec’s operating facilities, related IP and Carbon Credit rights, which are held in an Australian subsidiary of the Group.
The sale also sees Hydrodec’s 19 employees in North America join Slicker’s 190-strong team, with the company pledging to grow the business further in the years ahead.
Mark Olpin, Managing Director at Slicker, said: “The transformer oil that Hydrodec produces is essential to run electric grids and the carbon credits the process generates is a global first for this type of activity. Not only does this acquisition allow us to enter the North American market for the first time, but it is a perfect fit in terms of our future plans and green credentials.
“We are recognised as a leader in sustainable waste management in the UK and Europe, so the deal allows us to broaden our network, build on the success we’ve seen both in the UK and at our re-refinery in Denmark, and ultimately accelerate our pursuit of doing the right thing for our planet on a larger scale. As the world moves towards a carbon-neutral footprint, the potential to put even more recycled oils back into the market is huge.”
The sale comes after Slicker, which is based in Stourport-on-Severn, opened a £70 million oil re-refinery in Denmark in 2020 through a joint venture with German partner Avista AG. Since its launch, the innovative facility has regenerated over 110 million litres of lubricant base oils, including 75 million from the UK, saving around 40,000 tonnes of carbon emissions.
Phil Reynolds, Restructuring Advisory Partner at FRP, added: “This was a complex exercise and required a complete reorganisation of the Hydrodec group to be able to deliver. It’s a transformational deal that will give Slicker a foothold in the US and access to Hydrodec’s green technology, helping to accelerate its ongoing growth while also generating significant environmental benefits for its customers.
“The enlarged group is well placed to provide even more businesses with the effective tools to help manage their environmental impact. We are extremely pleased to have supported Hydrodec in executing this opportunity which will see it become part of a global group with huge potential to build on its existing position as an international leader in sustainable waste management.”
Glen Flannery and Ben Bodmer of CMS provided legal advice on the deal, while specialist valuation advice was provided by Metis.