2nd November 2022
The Furniture Recycling Group Secures Investment From RetourMatras
The Yorkshire & North East Corporate Finance team has advised specialist mattress recycling and circular economy company, The Furniture Recycling Group, on a cross border strategic investment from Netherlands firm, RetourMatras.
The investment from recycling company RetourMatras will support The Furniture Recycling Group (TFR Group) in addressing the number of disposed mattresses in the UK, which has grown considerably during the last five years.
RetorMatras is jointly owned by Ingka Investments (IKEA), Renewi and mattress manufacturer, Ikano Industry.
The partnership will enable TFR Group to grow its capacity to 1.5 million mattresses per year in England, transforming discarded mattresses into reusable materials that would otherwise go to waste.
By leveraging the combined experience and knowledge of the companies, TFR Group can create economies of scale, further increase material recoverability and realise major carbon emission savings.
The Furniture Recycling Group doubled its sales and workforce during the past four years and has recycled more than 3.5 million mattresses since 2012, with 30,000 tons of material flowing back into the economy. The company also rejuvenates mattresses, which prevents them from ending up as waste, giving them a second life and keeping them in circulation.
Nick Oettinger, chief executive and founder of The Furniture Recycling Group, said: “We are constantly looking for opportunities to further our capabilities and are delighted to be partnering with RetourMatras. The investment is another step in the evolution of our business and will be instrumental in optimising and growing our recycling and rejuvenation processes.
“The investment will enable us to provide broader coverage of our services, as well as accelerating business growth and fast tracking our automation plans, ultimately driving down the cost of mattress recycling for our customers.”
RetourMatras dismantles mattresses and prepares the materials for reuse in the Netherlands.
A self-developed, automated process makes mattress recycling feasible and enables RetourMatras to substantially contribute to the recycling targets of the Netherlands. The company is actively seeking opportunities to expand their impact.
“We are very excited to be partnering with TFR Group as it enters its next phase of growth. TFR Group is a great example of entrepreneurship in the circular economy,” added Chico Van Hemert, managing director of RetourMatras.
“By working together with players throughout the value chain, I truly believe that we can recycle more mattresses. We can further transform mattresses into valuable raw materials by taking the best practices and unique processes pioneered by both, TFR Group and RetourMatras.
“I look forward to growing the business together with Nick and his team, and jointly developing opportunities to make the mattress value chain circular.”
Roger Esler commented: “TFR Group has focussed on recycling a product that presents a real environmental challenge and this investment and partnership will increase the volumes of mattresses being recycled and the automation and efficiency of the process. This transaction reflects the importance of ESG to the wider stakeholder group involved, including the manufacturers and retailers of these finite life and recyclable products.”