Safe And Green Development Corporation acquires Resource Group to expand waste-to-value composting business

Safe and Green Development Corporation has announced a major acquisition that marks a strategic shift toward environmental sustainability and long-term revenue growth. The company has entered into a definitive agreement to acquire Resource Group US Holdings LLC, a next-generation engineered soils and composting company, in a transaction designed to strengthen its financial profile and expand its presence in the waste-to-value composting industry.

The deal, valued at $480,000 in cash along with a stake in restricted common stock and a convertible note, is expected to close in the second quarter of 2025, pending customary closing conditions and an audit of Resource Group’s financials. Safe and Green Development Corporation’s board unanimously approved the transaction, citing its potential to enhance shareholder value while positioning the company as a leader in sustainable composting solutions.

Transforming Organic Waste Into Revenue-Generating Sustainability Solutions

With increasing global demand for environmentally responsible waste management solutions, the acquisition of Resource Group aligns with Safe and Green Development Corporation’s strategic focus on sustainable business practices. Resource Group specializes in engineered soils and composting, utilizing proprietary technology to convert organic waste into high-quality soil and mulch products. The company’s innovative waste-to-value composting model provides an alternative to traditional fertilizers, which have faced sharp price increases in recent years.

The waste-to-value composting process optimizes organic waste recycling by producing engineered soils that meet stringent environmental standards. This approach not only reduces landfill dependency but also offers a cost-effective solution for businesses, municipalities, and agricultural industries seeking sustainable alternatives to chemical-based soil enhancers. The shift toward engineered soils and composting is driven by growing regulatory pressure to implement greener practices, making this acquisition a timely move for Safe and Green Development Corporation.

Market Expansion And Revenue Growth Potential

The global compost-to-substrate market is valued at approximately $10 billion, driven by increasing demand in the horticulture and agriculture sectors. Safe and Green Development Corporation expects Resource Group’s established operations and customer base to contribute significantly to its revenue growth. Resource Group has existing contracts valued at $10.7 million and has signed multiple memorandums of understanding (MOUs) that are expected to generate additional revenue streams across various composting product categories.

With the acquisition, Safe and Green Development Corporation is set to benefit from rising ESG (environmental, social, and governance) commitments among businesses and municipalities. As companies shift toward sustainability-driven initiatives, the demand for engineered soils and composting solutions is projected to increase, creating new opportunities for revenue expansion. The addition of Resource Group’s advanced composting technology provides a competitive advantage, positioning the company to scale its operations in response to market demand.

Innovative Technology Driving Cost-Effective Sustainability Solutions

Resource Group’s proprietary technology plays a crucial role in the company’s success within the sustainable composting industry. The company operates a permitted compost facility in Myakka City, Florida, with a well-established infrastructure that includes a fleet of transportation vehicles dedicated to green waste aggregation. By internalizing transportation services, the company reduces costs, minimizes road mileage, and improves operational efficiency.

A key differentiator is the Microtec technology used in the composting process. This system enhances the efficiency of organic waste breakdown while retaining essential nutrients, creating high-quality soil products that serve as a viable alternative to traditional fertilizers. With the cost of potting and growing media rising significantly—up 30% in 2022 following an 80% surge in 2021—Resource Group’s engineered soils and composting solutions offer an attractive and cost-effective alternative for businesses and agricultural operations.

Strategic Investment And Shareholder Expansion

As part of the transaction, Index Investment Group will become a major shareholder in Safe and Green Development Corporation, further strengthening its financial position. The involvement of a well-established investment firm with expertise in real estate and renewable energy aligns with the company’s long-term strategy of expanding its shareholder base and reinforcing its sustainability-driven business model.

Index Investment Group has a strong track record in real estate development and renewable energy investments, including deep-sea offshore wind projects and biomass energy power plants. Its extensive portfolio spans North America and Europe, and its investment in Safe and Green Development Corporation is expected to support future expansion in sustainable composting solutions.

Corporate Rebranding And Structural Changes

Following the acquisition, Safe and Green Development Corporation will implement a corporate rebranding strategy, including a name change and a new NASDAQ ticker symbol. The restructuring will also extend to the company’s board of directors, with the addition of three new members from Resource Group while four existing members from Safe and Green Development Corporation will remain in place.

The leadership team will continue to oversee corporate strategy while leveraging Resource Group’s expertise in composting and soil engineering. The integration of the newly acquired company is expected to facilitate operational scalability and accelerate the adoption of engineered soils and composting solutions across multiple industries.

Positioning For Growth In The Sustainable Composting Industry

With increasing regulatory support for environmental sustainability and the rising cost of traditional fertilizers, the waste-to-value composting industry presents significant growth opportunities. Safe and Green Development Corporation’s acquisition of Resource Group positions it at the forefront of this expanding market, allowing it to capitalize on trends that favor engineered soils and composting solutions.

The company’s commitment to sustainability aligns with broader industry movements toward responsible waste management and carbon reduction initiatives. By incorporating innovative composting technology and expanding its infrastructure, Safe and Green Development Corporation aims to meet growing market demand while reinforcing its position as a leader in sustainable waste solutions.