TIDMRWI
RNS Number : 7373L
Renewi PLC
10 September 2019
This announcement contains inside information
10 September 2019
Renewi plc
("Renewi", the "Company" or, together with its subsidiaries, the
"Group")
Sale of Reym industrial cleaning business
Renewi plc (LSE: RWI) is pleased to announce that it has reached
a binding agreement to sell its Reym industrial cleaning business
("Reym") to the REMONDIS Group ("REMONDIS Maintenance &
Services"), for an enterprise value of EUR64m (approximately
GBP57m(1) ) (the "Transaction").
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 EUR64m 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 EUR50m (approximately GBP45m(1) ). 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 EUR94.9m. The Group's reported financial results for the
year ended 31 March 2019 included EUR129.4m of revenue and EUR4.5m
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 EUR28m, of which
EUR23m 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 EUR115m."
Notes and additional disclosures
(1) Based on EUR/GBP exchange rate of 0.89726.
For further information:
========================= ==================
FTI Consulting Renewi plc
+44 20 3727 1340 www.renewiplc.com
Richard Mountain
Susanne Yule
========================= ==================
Market Abuse Regulation statement
This announcement contains inside information and is issued on
behalf of Renewi by Philip Griffin-Smith, Group Company Secretary.
This announcement is issued at 07:00 on 10 September 2019.
Forward-looking statements
Certain statements in this announcement constitute
"forward-looking statements". Forward-looking statements may
sometimes, but not always, be identified by words such as "will",
"may", "should", "continue", "believes", "expects", "intends" or
similar expressions. These forward-looking statements are subject
to risks, uncertainties and other factors which, as a result, could
cause Renewi's actual future financial condition, performance and
results to differ materially from the plans, goals and expectations
set out in the forward-looking statements. Such statements are made
only as at the date of this announcement and, except to the extent
legally required, Renewi undertakes no obligation to revise or
update such forward-looking statements.
About Renewi
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. Our extensive
operational network means we are always close to our customers.
For Renewi, waste is a state of mind, and an opportunity. Our
many years of knowledge and experience, combined with a broad range
of services, allow us to offer sustainable, practical recycling
solutions. We use innovation and the latest technology to turn
waste into useful materials such as paper, metal, plastic, glass,
wood, building materials, compost and energy. In other words, we
turn today's waste into tomorrow's raw materials.
The result of our work is less waste and contamination, a
smarter use of scarce raw materials, and a reduction in carbon
emissions. This means that we are contributing towards a cleaner,
circular world in which we "waste no more".
Visit our website for more information: www.renewiplc.com.
Images are available at www.renewiplc.com/imagelibrary.
About Reym
Reym is the market leader in the provision of high-end
industrial cleaning and waste transport services to the oil,
petrochemical and other heavy industries in the Netherlands.
Revenues in the year ended 31 March 2019 were EUR129m and
underlying EBIT was EUR5.3m. Reym has 700 highly trained and
skilled employees and operates a fleet of around 350 specialist
cleaning vehicles.
About REMONDIS Maintenance & Services
REMONDIS Maintenance & Services is parent company to BUCHEN
und XERVON, offering services and advice to both firms. BUCHEN
provides high quality industrial services that are divided up into
three dedicated areas: industrial services, waste management and
remediation. XERVON serves customers all around the world and
specialises in delivering technical services including scaffolding,
surface technology, insulation and maintenance work. REMONDIS
Maintenance & Services belongs to the REMONDIS Group, one of
the world's largest recycling, services and water companies.
Further information is available at www.buchen.net, www.xervon.com
and www.remondis.de
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Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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