UK venture capitalist 3i Group Plc is investing at least 2m pounds ($3.2m) in Frazier International, a Dumfries, Scotland-based company that claims to be the UK’s largest operator in the field of recycling used IT and telecoms equipment.
Frazier has built up annual revenue of more than 16m pounds ($25.6m) by taking redundant IT equipment, refurbishing it and then supplying it to new users. Though many of its customers are in developing countries or are cash-strapped charitable or educational institutions, it finds a ready market with commercial organizations that don’t need the latest technology.
The company, which employs 500 people in the UK, the Netherlands and Malaysia, had lost its way after moving into unprofitable activities but the injection of cash by 3i follows the arrival of a new management team that has refocused Frazier around its core business.
Chairman Ken Lewandowski also expects a boost to operations to come from forthcoming European Union regulation that will ban electrical equipment from landfill sites. When Frazier cannot refurbish equipment, it breaks it down and sells the components and any surplus material ends up with specialist recycling companies. An investment by 3i normally points to an IPO at some stage but Lewandowski would not be drawn on the exit strategy.
