3 September 2018
Renewi completes strategic exit from UK organics sector with sale of Cumbernauld facility
Leading waste-to-product company, Renewi plc (LSE: RWI) has sold its 50% share in the Energen Biogas ("EBG") anaerobic digestion (AD) facility in Cumbernauld to Bio Capital Limited ("BCL") which is owned by Helios, Equitix and Aurium Capital.
The sale of this non-core asset is fully aligned with Renewi's stated strategy to actively manage its business portfolio. The transaction successfully completes Renewi's planned exit from the UK AD sector, following the sale of its Westcott Park AD facility to Olleco earlier this year. The exit from this non-core sector enables the Municipal Division to focus its effort and resources, while also generating cash and a profit on sale.
EBG contributed £1.6m to Group profit before tax in the year ended 31 March 2018. The sale was completed for an undisclosed cash consideration which will result in £10m profit on sale (proceeds above book value). This will be reported as an exceptional item in the current financial year.
Bio Capital Limited has recently been established to own and operate a number of AD plants within the UK and Ireland. The acquisition of EBG represents a cornerstone investment within this portfolio. All employees at the facility will transfer across to EBG, securing continued employment for the people working at the site.
James Priestley, Managing Director of Renewi's Municipal Division said:
"I am pleased that we have completed our planned exit from the UK organics sector with the sale of our non-core EBG facility. The sale of EBG is fully aligned with our strategy, generates cash and profit, and allows us to focus on delivering profit growth within the Municipal Division. We will now work with BCL to ensure a seamless transition."
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About Renewi plc
Renewi, created in 2017 by the merger of Shanks Group plc and Van Gansewinkel Groep B.V., is a leading waste-to-product business ideally positioned to be part of the solution to some of the main environmental problems facing society today: reducing waste, avoiding pollution, and preventing the unnecessary use of finite natural resources.
We are listed on the London Stock Exchange and are a constituent of the FTSE250 index. With over 8,000 employees in Europe and North America, we have deep expertise and an extensive breadth of waste management products and services.
For us, waste is a state of mind, an opportunity. When we take away someone's waste, we then give it new life. We transform a wide range of used materials into useful products and raw materials for our customers, like recycled paper, metal, plastic and glass, woodchips, compost, energy, fuel, and other products.
In the process we protect the world from contamination, preserve finite natural resources, and enable customers to meet their sustainability goals. With our deep international expertise we also provide our customers with an extensive product range, combined with local service and attention.
Above all, our team is committed and passionate about our mission: waste no more. Renewi operates across five divisions:
• Netherlands Commercial - Collecting, sorting, treating and recycling commercial and household waste in the Netherlands
• Belgium Commercial - Collecting, sorting, treating and recycling commercial and household waste in Belgium
• Hazardous Waste - Treating soil, water and packed chemical waste at our flagship ATM facility and conducting specialist industrial cleaning in the Netherlands
• Monostreams - Managing a range of waste streams which focus on specific end markets such as glass, electronic goods, organics and minerals in Europe
• Municipal - Operating long-term waste management contracts with local authorities in the UK and Canada
For more information, please visit: www.renewiplc.com
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