Friday, February 01 10:24:02
Irish green waste and energy company, NTR, today said it has sold off its US recycling business for USD180m (E132m).
It said it has closed the sale of Greenstar LLC to WM Recycle America LLC, a subsidiary of Waste Management Inc. (WM), for a gross consideration of $180 millio.
NTR said that, after purchase price reduction for certain costs, third party debt and other deductions, the deal will result in an initial net receipt of $129 million.
Up to an additional $40 million is payable by 2018, should Greenstar, LLC, satisfy agreed performance criteria.
"This sale makes strategic sense for us, in the context of consolidating our portfolio and allowing us to focus on our strategy of driving future growth in the renewable energy sector. NTR has built a valuable recycling platform in its Greenstar business, which is reflected in its attractiveness to WM, an industry leader," said Michael McNicholas, CEO of NTR plc.
"NTR has now fully exited the sustainable waste management sector, in line with the strategic plan we announced at last year's AGM," added McNicholas. "This represents the delivery of a major milestone in our plan to reposition the company. NTR's financial capability has been further strengthened and NTR is well positioned for the future."
As the largest private recycler in the US, Greenstar and its subsidiaries manage approximately one and a half million tons of recycled material for over twelve thousand customers through twelve material recovery facilities, including seven single-stream plants, and a brokerage business for recovered material. With this acquisition, Waste Management will have the capacity to manage approximately 15 million tons annually of recyclable materials for municipal, industrial and commercial customers.