Completion of divestment of UK Municipal operations
October 10 2024 - 2:00AM
UK Regulatory
Completion of divestment of UK Municipal operations
10 October 2024
Renewi plc
Completion of divestment of UK Municipal
operations
Renewi plc ("Renewi" or the "Group") (LSE: RWI.L
and Euronext Amsterdam: RWI.AS), a leading European
waste-to-product company, is pleased to announce the completion of
the sale of its UK Municipal operations (“UK Municipal”) to Biffa
Limited (“Biffa"), a leading UK-wide integrated waste management
business (the “Divestment”).
As previously announced, the completion of the
Divestment will immediately deliver a number of significant
benefits to the Group, while meeting the outlined timeline:
- De-risks Renewi’s balance
sheet;
- Provides an increase in annual
cashflow of €15-20m;
- Supports EBIT margin expansion of
c.50 bps; and
- Improves the Group’s overall
recycling rate.
The Divestment is a key deliverable in Renewi’s
portfolio optimisation strategy and will allow the Group to fully
focus on its core recycling business in the Netherlands, Belgium,
France and Portugal. As part of Biffa, the UK Municipal activities
can be integrated into a broader base of leading UK sustainable
waste management operations where its expertise and asset base will
be complementary.
The UK Municipal activities have been
transferred to Biffa following a capital injection of approximately
£125m. Following completion, Renewi's pro forma core net debt /
EBITDA ratio came in at approximately 2.9x EBITDA as anticipated,
with leverage expected to drop by approximately 0.4 - 0.5 turns per
annum to 2.0x over the medium-term.
Renewi’s CEO, Otto de Bont: "We are pleased
to confirm the successful completion of the divestment of UK
Municipal to Biffa, bringing a positive outcome for all
stakeholders. This transaction is a transformational milestone in
our strategy, allowing us to further focus on our core and
profitable recycling business in Europe, as we continue to generate
more value for our shareholders and increase our contribution to
the circular economy."
Biffa’s CEO, Michael Topham: “We are pleased to have completed
our acquisition of UK Municipal and welcome our new colleagues and
customers to Biffa. We are committed to integrating the business
smoothly and continuing to provide a high-quality service to our
new customers while helping them to deliver their recycling and
de-carbonisation ambitions.”
For further information:
Renewi plc
Anne Metz, Director of Investor Relations
+31 6 4167 9233
investor.relations@renewi.com |
FTI Consulting
Richard Mountain / Ben Fletcher
+44 203 727 1340
renewi@fticonsulting.com
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About Biffa
Biffa has been at the forefront of the UK waste
industry for over 100 years. It is a leader in sustainable waste
management in the UK, operating across the waste value chain from
collection through sorting, processing, treatment, and
disposal.
Biffa is an established operator in the
Municipal landscape with over 65 years of expertise in Municipal
operations. This is underpinned by a strong financial position and
ongoing investment in its treatment facilities and new technology
including carbon capture. The company is enabling the UK circular
economy by expanding its low carbon collections network, building
out its plastic recycling capacity and investing in energy
recovery. Since 2019 they have cut their Scope 1 and 2 emissions by
37%.
Biffa’s ultimate owners are funds managed by
Energy Capital Partners, who are leading infrastructure investors
based in Summit, New Jersey, at the forefront of renewable energy
investing since its inception in 2005.
About Renewi
Renewi is a pure-play recycling company that
focuses on extracting value from waste and used materials rather
than disposing of them through incineration or landfill. The
company plays an important role in combating resource scarcity by
creating circular materials. In giving new life to used materials,
Renewi addresses both social and regulatory trends, contributing to
a cleaner and greener world.
Our vision is to be the leading waste-to-product
company in the world's most advanced circular economies. With a
recycling rate of 63.2%, one of the highest in Europe, Renewi puts
6.6 million tonnes of low-carbon circular materials back into use
each year. This contributes to mitigating climate change and
promotes the circular economy. Our recycling efforts help to
protect natural resources and prevent more than 2.5 million tonnes
of CO2 emissions annually.
Renewi leverages innovation and the latest
technology to turn waste into circular materials such as paper,
metals, plastics, glass, wood, building materials, compost, and
water. We employ over 6,000 people across 154 operational sites in
five countries in Europe. Renewi is recognised as a leading
waste-to-product company in the Benelux region and a European
leader in advanced recycling.
Visit our website for more information:
www.renewi.com.
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