By High Growth Scotland
Published: 15 May 2026
Manchester-based total waste management group Papilo has acquired Uddingston-based REKK Recycling — the private equity-backed group’s first Scottish deal and its third bolt-on acquisition in under a year as it builds scale in the UK circular economy sector.
The deal, confirmed in mid-April by TheBusinessDesk, was completed for an undisclosed sum. Papilo is backed by Manchester-based private equity firm Palatine through its Impact Fund. With REKK now folded into the group, Papilo employs more than 200 people across the UK and generates revenues approaching £60m a year.
What REKK brings
Based at Uddingston near Glasgow, REKK provides total waste management solutions to food production, manufacturing and industrial clients across Scotland and England. The acquisition gives Papilo immediate operational presence in Scotland — a market the group had not yet entered — and adds a customer base spanning some of the country’s most material industrial sectors.
REKK’s founders Steven Dodds and John Byrne are remaining with the business through the next phase of growth — a structure typical of bolt-on private equity transactions where management retention is critical to integration success.
“REKK is an excellent strategic addition for Papilo and enhances our geographical presence into Scotland,” said Michael Gibson, who took over as Papilo CEO earlier in April 2026. “Like ourselves, the company’s ethos is built on best-in-class customer service and on supporting better environmental outcomes through recycling. Founders Steven and John have done a fine job in building the business and I am pleased that, along with their team, they are remaining with the group for the next phase of growth.”
The Palatine roll-up thesis
Papilo’s expansion strategy is a textbook private-equity-backed roll-up in a fragmented UK market. The group made its first major bolt-on in February 2026 with the acquisition of Midlands-based Allwood Recycling Solutions, which lifted combined revenues to around £60m. REKK is the third deal in less than 12 months — and signals appetite for further activity across UK geographies and waste streams.
Greg Holmes, senior investment director at Palatine Impact Fund, framed the deal in classic impact-investing terms: combining commercial scale with environmental performance.
“REKK is an excellent fit for Papilo — not just geographically, but in its shared commitment to diverting waste from landfill and supporting clients to take a more responsible approach to resource management,” Holmes said.
“This is Papilo’s third acquisition in under a year as we build a business of true scale in the circular economy in partnership with the ambitious management team and we are well positioned to continue that growth through further strategic M&A.”
Deal structure
The transaction was funded by private credit specialist Kartesia and Virgin Money. Papilo was advised by Gateley on legal matters, Fellwood Advisory on debt advisory, MHA Smalley on financial and tax due diligence, and Luminii Consulting on commercial due diligence. Advisers to REKK included KBS on corporate finance and Mackrell on legal.
The presence of Kartesia and Virgin Money on the debt side reflects the increasingly active mid-market private credit landscape supporting UK roll-up strategies — a structure now visible across multiple Scottish sectors including financial services, professional services, and waste and recycling.
What it signals for Scottish industrial businesses
The Papilo–REKK deal sits within a broader pattern worth noting. UK private-equity-backed consolidators are increasingly looking north of the border for bolt-on acquisitions — drawn by valuation arbitrage, owner-managed businesses approaching succession decisions, and platforms with established regional customer bases that can be scaled through integration into national or international groups.
For Scottish founders building owner-operated businesses across waste, services, manufacturing, and adjacent industrial categories, the implication is straightforward: there is meaningful institutional capital actively looking for transactions in the £5m–£50m enterprise-value bracket, with patient PE-backed groups typically willing to retain founder management teams through integration.
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For Scotland’s environmental performance, the implication is less straightforward. Roll-ups in waste and recycling can deliver scale economies that drive better landfill diversion — but only if the acquiring group has the operational discipline and capital to invest in genuinely improved infrastructure. The Palatine Impact Fund’s stated mandate is consistent with that ambition. Whether Papilo’s operational delivery matches the rhetoric will become clearer over the next 12 to 18 months.
For now, REKK becomes the first Scottish addition to a fast-scaling UK circular-economy platform — and Uddingston gains the kind of long-term operational support that often eludes independently-owned regional businesses.
