Bridges invests in TEG Group

Bridges Ventures, the fund manager with a 'social mission', is to invest £5.5 million in AIM-listed organic waste specialist TEG Group.

Bridges Ventures, the fund manager with a 'social mission', is to invest £5.5 million in AIM-listed organic waste specialist TEG Group.

The deal will give Bridges 22.3 per cent of the enlarged share capital of TEG. Part of the money will fund the acquisition of Simpro, owner of six composting sites in the Midlands, which will help Lancashire-headquartered TEG expand geographically.

Bridges' investment will also be used to fund the launch of additional sites in areas undergoing regeneration, enabling the firm to meet its social goals.

Ian Hislop, a consultant for Bridges Ventures, says, 'This is a first for Bridges Ventures investing in a public company and we’re excited about the extremely good fit with our focus on investing in regeneration and the environmental sector.'

Hislop adds that TEG is 'well positioned to take advantage of the evolving waste recycling and waste-to-energy markets'.

Michael Fishwick, chief executive of TEG, comments, 'The organic waste market continues to grow rapidly, we have a strong pipeline of projects and we expect to develop a range of further TEG facilities.'

TEG Group reported sales of £15.4 million last year, up from £12.7 million in 2008, with pre-tax profits of £160,000.