UK Vegware’s teams in both the UK and US are expected to join the Novolex family. The Vegware brand will remain intact as part of Novolex’s Eco-Products portfolio of brands and will continue to sell its products under the Vegware label.

Vegware was founded in Edinburgh in 2006 by Joe Frankel. Headquartered in Scotland, it has operations in the UK, EU and the United States. The company sources renewable, plant-based materials to manufacture cups, cutlery, tableware and takeout packaging designed to be commercially composted with food waste. Sold in more than 70 countries, Vegware products are known for their quality, performance and design.

Stan Bikulege, chairman and CEO of Novolex, said: “Vegware is an excellent company and its addition to Novolex is an exciting step to growing our global compostable products footprint. We are pleased to welcome the Vegware team to the Novolex family and maintain our momentum of supporting brands that meet society’s expectations for sustainable products.”

Joe Frankel, managing director of Vegwar, added: “Vegware has been committed to quality, performance and design for over 15 years. Joining Novolex, with its exceptional resources and large footprint, will allow Vegware to expand distribution of quality compostable products and waste management initiatives to our customers across the globe.”

The addition of Vegware products will complement Eco-Products’ own product line that is made of renewable materials that can often be recycled and/or composted. This partnership will broaden Eco-Products’ presence in Europe and give Vegware additional access to the North American market.

Novolex is a portfolio company of The Carlyle Group, an alternative asset management group with $260 billion in assets, spanning three business segments and 437 investment vehicles.

EY was corporate finance adviser to the Shareholders of Vegware Holdings Ltd. Ally Scott, EY corporate finance partner and managing partner for EY Scotland, said: “Vegware is a stellar example of a progressive company that has both educated and listened to the market, reacted with world-class innovation over many years, created a successful and leading product range and built a high growth team and business – all from its Edinburgh base.

“Our role in helping Joe, Bradenham Partners and the Vegware management team to originate and deliver this deal is very much in step with our own ambition at EY to continue working hand in hand with Scotland’s most innovative, ambitious entrepreneurs: something I passionately believe in.

“Scotland is very much open for business on the world stage. This is backed up by our latest report showing a 6% increase in foreign direct investment last year, at a time when overall UK and European FDI fell back. At EY we are seeing lots of M&A activity with live interest in the Scottish deals market and innovative growth companies attracting global attention.

“The attraction in Vegware reflects accelerating global trends in the ESG arena and the conscious shift towards ethical investing. With its clear sense of purpose, Vegware has proven that the synergy between growth businesses and sustainability is not just desirable, but the two are avidly compatible and create a powerful combination which we expect will continue to attract premium valuations in the global M&A market.”