Shanks, Van Gansewinkel sign merger agreement
The Dutch recycling company Van Gansewinkel and the U.K.-based waste management company Shanks plc have signed an agreement to merge their operations, creating one of the largest waste and recycling firms in the Benelux region of Europe. The two parties first announced the proposed deal in early July.
Under the terms of the agreement, Shanks will acquire Van Gansewinkel for €482 million ($540.80 million) on a debt-free cash-free basis. According to Van Gansewinkel, the Dutch company will receive €366 million in cash and 190 million Shanks shares, representing a 23.8% stake in the merged company.
The companies still must receive approval from shareholders of Shanks as well as from European competition authorities. However, Van Gansewinkel’s two largest lenders—Beach Point Capital Management LP and Cross Ocean Partners—have said they support the deal.Shanks and Van Gansewinkel say they expect the deal to be complete by the end of this year.
In a news release issued by Van Gansewinkel, CEO Marc Zwaaneveld says, “In the past two years, Van Gansewinkel has revitalised itself and has turned the corner, trading significantly ahead of budget and compared to management expectations earlier this year.”
In addition to having a presence in the Benelux countries, Van Gansewinkel, through its subsidiaries Coolrec and Maltha, has operations in Germany, France, Portugal and Hungary.
Shanks operates three divisions, Hazardous, Commercial and Municipal, in the Netherlands, Belgium, U.K. and Canada.