Yorkshire Bank supports multi-million pound deal for aluminium and waste recycling firm

JBM International, one of the UK’s leading aluminium and waste recyclers, has undergone a multi-million pound transaction backed by Yorkshire Bank.

The transaction sees Barclays Ventures take a £10 million stake in the business via a shareholder reconstruction and allows the company’s owners to realise part of their investment. Yorkshire Bank has provided a funding package to support the deal.

JBM International, a family-run business based in Hixon, Staffordshire, smelts down scrap aluminium for re-use. It also accepts waste from the aluminium manufacturing industry and turns it into saleable products. The group was established in 1979 by Jesse Brough and in 1986 was passed onto his two sons - Miles, the current managing director, and Ashley, the commercial director.

The Broughs have grown the business to be a £30 million group, employing 60 people with international links to Australia, India, Iceland and Germany.

The aluminium industry produces large amounts of waste. JBM’s processes, which were developed in conjunction with universities, make it economically viable to treat ‘dross’ – the residual waste which is left behind after conventional recycling has been carried out.

Not only does it offer a way to reduce the amount of material that would otherwise end up in landfill, but it also produces raw materials which can be used in the manufacture of products such as cement or even used as alternative fuels. JBM is one of only two operators in the UK with the ability to do this.

JBM’s subsidiary Plasmet (UK) Ltd specialises in waste oxide processing while JBM Ventures Ltd is a joint venture with the Australian company Kempe, and provides a hazardous waste solution for the metals company Alcoa in Australia. 

Miles and Ashley Brough will retain a major stake in the business and will continue in their current roles for the foreseeable future. The deal will also allow other key members of the management team to take a stake in the company.  Michael Averill, ex group chief executive of listed waste specialist, Shanks Group plc joins the Board on completion.

Steve Drury, director with Yorkshire Bank’s Specialist & Acquisition Finance team said: “This is an excellent opportunity for us to support a high quality business in a rapidly expanding and one with little or no competition. No other company in the world can recycle low-quality aluminium waste in such an economically viable way as JBM.

“With rising landfill taxes, a move towards increased recycling and greater demand for alternative fuels and other products, JBM can look forward to a bright future.”