The boards of Gresham House Renewable Energy Venture Capital Trust (VCT) 1 plc and Gresham House Renewable Energy VCT 2 plc have confirmed the investment into the firm, bio-bean, which is the largest recycler of waste coffee in the UK.
The investment, split 50/50 between the two VCTs and including respectively £800k of equity and £430k of debt, will further enable the company to upgrade and expand its capacity in order to improve efficiencies and execute its business plan.
This investment represents 30% of the £4m funding round announced by bio-bean in April 2019. The Gresham House VCTs’ investment forms the final part of that round, and values bio-bean at £7.6m
Bio-bean is seeking to achieve both geographical expansion into mainland Europe and to launch new products in the flavour and fragrance market.
Bio-bean will utilise the same model for recycling waste coffee grounds in mainland Europe, working in co-ordination with various international partners within its value chain.
“Bio-bean has a unique proposition and hard asset backing, meaning it fits very well within our existing sustainable investment portfolio,” said Bozkurt Aydinoglu, investment director at Gresham House and co-manager of the VCTs.
“We look forward to seeing the fruits of the team’s labours as they build scale and diversify their product portfolio.”
The Gresham House investment team also said that it remained on the look-out for new opportunities to put capital to work in the clean technology space, seeking to help the UK’s transition to a low-carbon economy.
Bio-bean was advised on this transaction by European investment bank ClearlySo.
The move follows a spate of recent investments in food and drink firms within the UK.
As previously reported by Food Manufacture earlier this month, Wrights Food Group completed a £7m investment programme at its manufacturing sites in Crewe, supporting the creation of new jobs and new contracts.
Also, The Classic Mineral Water Company has completed a multi-million pound investment into production at its factory in Lurgan, Northern Ireland.