REG-Renewi plc Renewi plc: Acquisition of Paro

RenewiAnnouncement

24/05/2022 07:15

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   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  €67m,  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 €43m,
   EBITDA of €9.9m, operating  profit of €7.3m and  gross assets  of €34.4m. 
   Cash consideration for  Paro of  €53.5m, 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:  1 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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