Wednesday, March 05 12:06:50
Greenstar, Ireland's largest waste management firm, today announced the completion of the acquisition of substantially all of its assets by an affiliate of Cerberus Capital Management, one of the world's biggest private investment firms.
Greenstar has been in receivership since August 2012.
Mark Keough, the newly appointed CEO of Greenstar said, "Today marks the beginning of a new chapter for the Greenstar business. The company has emerged from receivership debt-free, with a strong balance sheet, over 85,000 customers and 700 team members. We are grateful to our customers, our employees and our suppliers, who have stood by the company through a difficult period, under the able guidance of the Receiver, David Carson and his team at Deloitte. With the backing of our new shareholder, Cerberus, we are keen to re-assert Greenstar's position as a trusted provider of sustainable waste management in Ireland."
Greenstar plans to focus its efforts on upgrading its collection infrastructure, expanding its production of alternative fuels, and growing its renewable energy division, which converts methane gas to electricity for the EirGrid transmission network, accounting for about 28pc of the total bio-renewable energy in Ireland.
Liam Strong, Chief Executive of Cerberus European Capital Advisors, and the new Chairman of Greenstar, said, "Cerberus sees great potential in Greenstar. We are making an investment not just in waste management, but also in Ireland. Cerberus has a long record in re-capitalising and providing operational support to companies that are important to their customers and other constituents and can benefit from improved business performance. We look forward to supporting Greenstar's resurgence as a waste-to-energy leader."
Ron Bolger, Principal of Dublin-based Ely Capital and Vice Chairman of Greenstar, said, "David Carson and the Environmental Protection Agency deserve considerable credit for the completion of this transaction and Greenstar's successful emergence from receivership. With the support of Cerberus, Greenstar is well positioned to meet the demand for waste management in a recovering Irish economy."
Mr Keough was appointed CEO by Greenstar's new Board when the transaction closed. Previously he was a Director at Montagu Private Equity Associates LLP in London, and prior to that he was a partner with McKinsey and Company.
In addition to Mr. Keough, the senior management team at Greenstar will consist of Jerry Dempsey (Commercial), Chris Bell (CFO), Declan O'Reilly (Dublin Region Operations), Aidan Shanahan (National Region Operations), and Donal Monahan (Recycling and Recovery).