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 |
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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