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A Greater Manchester waste management firm backed by private equity group Palatine has acquired a specialist agricultural business.

Swinton-based Papilo has acquired the organic waste landspreading (waste-to-land) division of Silverwoods Waste Management. Papilo says the deal will boost its revenues by more than £5m, and says the acquired business has already been part of its supply chain for 15 years.

The waste-to-land business works with companies including food manufacturers to identify waste that is suitable for use by farmers as natural fertiliser.

This is the first acquisition for Papilo since Palatine’s Impact Fund invested in June 2023.

Silverwoods Waste Management will continue to operate its Altham waste transfer station in Lancashire and in-vessel-composting facility in Cumbria.

Paul Hodgkiss, CEO of Papilo said:" At Papilo our goal is to lead the way in fostering a circular economy, where waste is minimised, resources are maximised, and everything we do contributes to a healthier planet. We are delighted therefore to have acquired Silverwoods Waste Management's Waste-to-Land division, a deal that accelerates our growth while increasing our sustainable business mission.

"The founder Julian Silverwood has done a first-class job in growing this business and we look forward to supporting him and the team as they join forces with Papilo."

Greg Holmes, from Palatine's Impact team, said: "This strategic bolt-on acquisition strengthens Papilo's strong ESG credentials and will offer the business a further opportunity to grow through cross selling its services to existing customers. We are pleased to have completed the first acquisition since our investment and continue to look at a number of other opportunities for the business."

Papilo was advised by law firm Gateley. MHA provided financial and tax due diligence, while Cura Terrae provided environmental due diligence.

Silverwoods Waste Management was advised by KPMG Corporate Finance and KPMG Legal. The deal was supported by Virgin Money with its Sustainability Linked Loan product.

Will Griffith, KPMG’s º£½ÇÊÓƵ head of waste & recycling M&A, said: “This investment will enable Papilo to expand its total waste management offering and Silverwoods’ Waste-to-Land division has found a long-term home to flourish. We are pleased to have advised on the transaction which emphasises the opportunities within a buoyant º£½ÇÊÓƵ waste and recycling M&A market.”