Electronics Recycling

Stockholm, Sweeden-based Investor Growth Capital (IGC) is investing $15 million in a Series A Preferred Stock financing in ReCellular, the Dexter, Mich.-based cell phone recycling firm. The investment adds a growing clean-tech company to IGC’s portfolio and enables ReCellular to expand operations and accelerate its revenue growth, according to a press release from the company.

XMS Capital Partners, Willmette, Ill., served as exclusive financial advisor to ReCellular in connection with this transaction.

"This investment marks a milestone in ReCellular’s history," says ReCellular CEO Chuck Newman. "It marks our transition from a successful start-up in the emerging field of cell-phone recycling into the undisputed global leader in electronics sustainability."

ReCellular’s revenues have increased an average of 25 percent for the past eight years. The company bills itself as the leading collector, recycler and refurbisher of cell phones in the world. In 2008, the company is on track to process more than 6 million phones.

"Our goal was to develop a profitable company that was socially and environmentally responsible," Newman says. "With IGC’s support and investment, we will dramatically expand the company and set the standard for success in electronics sustainability and clean-tech operations."

The investment in ReCellular is part of IGC’s "clean-tech" investing practice. "We see tremendous growth potential in ReCellular," says Albert Kim, vice president of IGC. "They have revolutionized the electronics sustainability industry by providing a convenient solution for consumers to recycle their used handsets, while at the same time extracting enough value from these phones to build a successful business."

IGC is the wholly owned venture capital arm of Investor AB, the largest listed industrial holding company in the Nordic region. IGC invests in high-quality, growth-oriented companies in North America, Europe and Asia.

In connection with the investment, Noah Walley and Albert Kim of IGC will join ReCellular’s board of directors.

"We chose to partner with IGC because of their deep knowledge of the sector, their experience with growth-stage companies and the value they can bring through rich networks in the U.S., Europe, and Asia," Newman says.

Recellular plans to expand its operations, opening new office facilities, consolidating processing facilities and significantly increasing the number of Michigan employees.