LONDON: Renewi plc has reached a binding agreement to sell its Reym industrial cleaning business to the REMONDIS Group for an enterprise value of €64 million.
Renewi put Reym up for sale late last year to focus on recycling. Reym fits well with REMONDIS Maintenance & Services’ existing activities in the Netherlands and the Transaction is expected to benefit both Reym’s customers and its employees.
Renewi and REMONDIS Maintenance & Services have agreed long-term contracts to provide the market with Total Care services and the treatment of Reym’s waste streams by Renewi.
The enterprise value of €64m includes a number of debt-like items that will be assumed by REMONDIS Maintenance & Services and, upon completion, Renewi will receive cash consideration of approximately €50m (approximately £45m1). The Group expects to use the proceeds from the Transaction to reduce its net debt.
In the Group’s financial statements for the year ended 31 March 2019, Reym was reported as an asset held for sale, with gross assets of €94.9m. The Group’s reported financial results for the year ended 31 March 2019 included €129.4m of revenue and €4.5m of operating profit from Reym.
The transaction is expected to result in a loss on sale during the financial year ending 31 March 2020 of around €28m, of which €23m relates to historic goodwill. Completion, which is subject to competition clearance, is expected to take place before the end of October 2019.
Commenting on the disposal, Otto de Bont, Chief Executive Officer at Renewi, said: “We are pleased to announce the successful sale of Reym. Together with the previously announced sale of Renewi’s Canadian business, the sale of Reym will simplify the Group, strengthen its balance sheet and sharpen the focus on core Benelux recycling operations. We have agreed long-term contracts to ensure continued customer service and waste inflows to ATM. This disposal, combined with the previously announced sale of our Canadian business, will result in total cash proceeds of up to €115 million.”
Renewi is a leading waste to product company that gives new life to used materials every day. We have more than 7,000 employees working at 186 operating sites across Europe.