Renewi plans to sell Canadian operations

Renewi plc, Milton Keynes, England, has announced that it plans to sell its Canadian operations, Renewi Canada, to Convent Capital, which is an independent, sustainability-focused Dutch investment firm based in Amsterdam. Renewi is selling Renewi Canada for an enterprise value of up to $107.5 million Canadian dollars (or approximately €72 million). 

Upon completion, Renewi will receive initial cash consideration of approximately $84 million Canadian dollars (or approximately €56 million), Renewi reports in a news release announcing the sale of its Canadian operations. Following completion, Convent will, with the assistance of Renewi, seek additional project financing for Renewi Canada’s operations, the successful execution of which will result in further consideration payable to Renewi up to a maximum of $17.5 million Canadian dollars (or approximately €12 million).

The enterprise value of $107.5 million Canadian dollars (or approximately €72 million) includes deferred consideration, debt-like items and capex adjustments. Completion, which is subject to change of control approvals from relevant municipalities in Canada, is expected to take place before the end of September 2019, Renewi reports in a news release.

“[The] announcement delivers on our commitment to simplify our business and strengthen the balance sheet, achieving a fair value for our Canadian business,” says Otto de Bont, chief executive officer at Renewi. “Convent is already present in Canada and we believe Convent will be a good owner for our customers and employees in Canada.”