DJ Renewi plc: Acquisition of Paro
Renewi plc (RWI) Renewi plc: Acquisition of Paro 24-May-2022 / 07:04 GMT/BST Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.
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24 May 2022
Renewi plc ("Renewi")
ACQUISITION OF PARO
Renewi plc (LSE: RWI), the leading European waste-to-product business is pleased to announce that it has today reached conditional agreement to acquire 100% of the share capital of GMP Exploitatie BV ("Paro"), an Amsterdam based commercial waste and recycling business, from GMP Groep BV for an enterprise value of EUR67m, funded from the Group's existing facilities. The agreement is conditional on competition approval and completion of relevant employee representation procedures.
Paro operates from a large and well permitted processing facility located in the port area of Amsterdam and trades under the brands Paro, Cirqu and Buro Ontwerp & Omgeving (Buro). On a 130,000m2 site with excellent road and water access, Paro operates two advanced sorting lines for processing mixed construction and demolition waste, as well as bulky household waste (c300kt). In addition, a newly installed minerals classification and washing installation enables Paro to produce secondary construction materials from construction and demolition waste (c500kt). With a recycling rate of around 78%, Paro will contribute towards Renewi's objective to achieve a Group-wide 75% recycling rate by 2025.
For the year ended 31 December 2021, Paro reported revenues of EUR43m, EBITDA of EUR9.9m, operating profit of EUR7.3m and gross assets of EUR34.4m. Cash consideration for Paro of EUR53.5m, including debt and other items, will be paid on completion. This will be funded from the Group's existing committed debt facilities, and is expected to increase leverage by around 0.2x initially.
The acquisition is expected to be earnings accretive for Renewi from the outset and will deliver synergies from site rationalisation, route and waste flow optimisation and other operational benefits as part of the Group's Commercial division. The acquisition is consistent with the Group's strategy to grow market share, and its ambition to be the leading waste-to-product company in Europe's most advanced circular economies.
Otto de Bont, Chief Executive, commented:
"We are delighted to announce our first major acquisition since the creation of Renewi in 2017. The transaction strengthens our position in secondary material production and is fully aligned with our strategy to produce higher quality secondary materials. It is expected to generate significant synergies with our existing operations in the Netherlands."
Marc den Hartog, Managing Director Commercial Waste Netherlands, commented:
"We are delighted to welcome the Paro team and their customers to Renewi. Through its operating businesses and brands Paro has an excellent reputation. Its operations will further strengthen our Waste to Product position, and extend our capabilities and service offering as a leading recycler."
Gerard Putman, Owner and General Director of Paro, commented:
"Since inception in 2006, Paro has grown significantly to become the key player it is today. Our mission has been to contribute to a clean, safe and pleasant living environment, advising customers on planning and circularity issues, and providing processing and recycling of waste into raw secondary materials. I believe that Renewi is the perfect acquirer and together our combined businesses will deliver a stronger, value added proposition to our customers. I am proud to have led this business from start up to exit."
For further information: Paternoster Communications Renewi plc +44 20 3012 0241 +44 7976 321 540 Tom Buchanan Adam Richford, Head of Investor Relations +44 20 3012 02414 +44 7814 06 0457 Ben Honan Claire Tompkins, Communications
About Renewi
Renewi is a pure-play recycling company with a focus on extracting value from waste and used materials rather than disposal through incineration or landfill. The company also plays a key role in limiting resource scarcity through the creation of secondary materials, and by so doing addresses both social and regulatory trends and contributes to creating a cleaner, greener world.
Renewi's vision is to be the leading waste-to-product company in the world's most advanced circular economies. By opting to recycle, the company avoids emissions of more than 3 million tonnes of CO2 and as a result plays a part in contributing to a sustainable society, transitioning to a circular economy and driving the progress needed to halt climate change.
Renewi, which draws on innovation and the latest technology to turn waste into useful materials - paper, metals, plastics, glass, wood, building materials, compost and energy - employs over 6,500 people who work on 162 operating sites in 6 countries across Europe and the UK. Renewi is recognised as a market leader in Benelux and a regional European leader in recycling.
Visit our website for more information: www.renewi.com.
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ISIN: GB00BNR4T868 Category Code: ACQ TIDM: RWI LEI Code: 213800CNEIDZBL17KU22 OAM Categories: 2.2. Inside information Sequence No.: 0 EQS News ID: 1359493 End of Announcement EQS News Service =------------------------------------------------------------------------------------
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(END) Dow Jones Newswires
May 24, 2022 02:04 ET (06:04 GMT)
