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 terms of the agreement, Van Gansewinkel will be acquired by Shanks 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 need to receive approval from shareholders of Shanks as well as 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. The companies say they expect the deal to be complete by the end of this year.

In a Van Gansewinkel release, CEO Marc Zwaaneveld says, “In the past two years Van Gansewinkel has revitalized itself and has turned the corner, trading significantly ahead of budget and compared to management expectations earlier this year. This merger is a logical step forward for both Van Gansewinkel and Shanks.

“The activities and competencies of both businesses complement each other perfectly and provide a stable basis for further growth," says Marc Zwaaneveld, CEO of Van Gansewinkel. "I am therefore convinced that the new alliance has all the ingredients to be a very successful European leader in the waste management industry. We can accelerate the production of high-quality secondary raw materials from waste and make a significant contribution to the circular economy.”

In addition to having a significant position in the Benelux countries (Belgium, Netherlands and Luxembourg), Van Gansewinkel, through its subsidiaries Coolrec and Maltha, has operations in Germany, France, Portugal and Hungary.

Shanks operates three divisions: Hazardous, Commercial and Municipal. It has operations in the Netherlands, Belgium, U.K. and Canada and employs 3,500 people.