Waste-to-product company, Renewi plc 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.
“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.”
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.”
