Reconomy swoops for fast-growing intelligent supply chain business
Reconomy, the leading provider of outsourced, asset-light services to the circular economy, has acquired global supply chain business, ASCG. This milestone transaction will allow ASCG’s customers to benefit from Reconomy’s sustainability credentials and expertise as its strategy delivers against social, environmental, and business objectives.
ASCG will continue to operate under its own brand within the Reconomy Group’s Product Returns division, collaborating across the business and joining recently acquired ReBOUND and Cycleon in developing innovative ways for omnichannel retailers to make their supply chain a competitive advantage. As ecommerce continues to boom, ASCG and the Reconomy Group will now provide unrivalled technology-enabled global support for leading retail brands seeking to manage their environmental impact.
ASCG chairman, Mike Danby MBE, exits the business as part of the deal, having built an impressive executive team in recent years. Claire Webb will continue to lead the business as managing director with Ben Balfour as business operations director, supported by an exceptional senior leadership team. This means ASCG’s employees, customers and partners can expect ongoing stability and business continuity beyond the deal. ASCG already employs 1800 people globally and plans to create c.800 jobs during its peak season, including roles at sites in Bradford, Halifax, Sheffield and Corby, as well as HGV drivers across the UK.
ASCG managing director, Claire Webb said: “We’ve experienced high growth for more than a decade and we have ambitions to accelerate this, while continuing to push boundaries for supply chain innovation. Since joining the business three years ago, I’ve been continuously impressed by our team’s ability to use intelligent supply chain solutions to solve problems and create game-changing processes for our retail customers.”
“Our people and culture are key to our success to date and will continue to be as our values remain. We are creating hundreds of jobs across the north and midlands, and this means we can offer even more rewarding career opportunities to existing teams and new hires.
“The deal marks a statement of intent for the future and provides huge benefits for our team and customers now we’re part of a bigger yet still entrepreneurial organisation. ESG is top of every business’ agenda and with Reconomy’s credentials and track record, we’ll be able to help our clients with their sustainability goals. We look forward to working with everyone at Reconomy to achieve our combined ambitions”
Paul Cox, CEO of the Reconomy Group added: “It’s fantastic to welcome ASCG and the team to the Reconomy family. This deal was attractive because of ASCG’s deep sector expertise, exceptional team, innovative bespoke technology, agile culture and unwavering approach to excellent customer service, which matches our own.
‘The breadth of ASCG’s value-added services will enhance the Reconomy Group’s existing industry-leading product returns proposition. We’re excited about the future potential and confident that this acquisition will allow us to provide even more comprehensive support to our customers as they pursue sustainable, circular approaches.”
Mike Danby, executive chair at ASCG said: “It’s extremely rewarding to be leaving the business in the hands of such a capable management team and with fantastic, forward-thinking owners. I look forward to seeing what ASCG goes on to achieve in the next chapter.”
KPMG Corporate Finance acted as lead advisor to ASCG, who was also advised by DWF (legal), EY (financial due diligence) and PwC (commercial due diligence).
Giles Taylor, Corporate Finance Partner at KPMG, said: “We were delighted to advise Advanced Supply Chain Group on this significant deal for the region. They have a fantastic business operating in a sought after industry, and offer tech-enabled logistics solutions that significantly enhance their customers’ supply chains from an efficiency, cost and carbon footprint perspective.”