British involvement in the Dutch waste management sector has strengthened with an agreement last Friday (30 March) for the UK’s 3i Infrastructure plc to buy half of the Dutch energy from waste business Attero. The other 50% is to be bought by an offshoot of Germany’s Deutsche Bank, DWS (formerly Deutsche Asset Management).
Total value of the proposed deal is estimated at about £352 million (402m Euros), more than double the amount Dutch local authorities sold the firm for in 2014.
The UK already has strong links with Holland because of exports of RDF (refuse derived fuel) to the country and through the operations of Renewi, formed by Shanks merging last year with Holland’s Van Gansiwinkel waste business.
3i Infrastructure announced on Friday (30 March) that it is to invest 201m Euros to acquire a 50% stake in Attero, which it described as “one of the largest waste treatment and disposal companies in the Netherlands”.
Attero provides energy from waste, landfill and recycling services
Attero – which also undertakes recycling activities – is being bought by 3i and DWS from Waterland, a Dutch private equity fund. Completion is subject to certain third-party approvals and is expected later this year. In 2017 there were expectations that a Chinese buyer would acquire Attero but restrictions on investment from China were reported as the reasons for the scuppering of the possibility 12 months ago.
EfW plants
Attero owns two energy from waste plants, two sorting and pre-treatment facilities, six anaerobic digestion facilities, seven composting facilities and ten landfills. The EfW business accounts for about 80% of revenues of which a quarter relates to selling electricity and heat, said 3i. And it noted that Attero sources its waste from domestic municipalities, commercial and industrial customers, as well as a number of UK and Irish exporters. 3i added that Attero has a leading market share and EfW processing capacity of c. 1.8 million tonnes.
Attero has contracts with a range of UK businesses which are thought to include FCC, Seneca, Veolia, and a number of waste brokers and regional waste management companies, to burn waste in its two energy from waste plants. Local authorities sending waste to Attero are understood to consist of Norfolk, Kent, some of the Bedfordshire local authorities and others.
3i said that Attero has “good revenue visibility due to its long-term contracts with customers. It is well positioned within the Dutch market with two of the largest and most efficient EfW plants in the country, strategically positioned with good port, road and rail access for both import and domestic waste supply.”
Cash yields
Richard Laing, chairman, 3i Infrastructure plc, commented: “We are delighted to be announcing this new investment in Attero, the leading Dutch player in the waste treatment market. We believe the investment will deliver strong cash yields for our shareholders, and complements our existing portfolio well through providing further geographic and sector diversity.”
Phil White, head of infrastructure, 3i Investments plc, the investment adviser to 3i Infrastructure, added: “Attero is strongly positioned to benefit from favourable underlying trends in the European waste market, driven by EU directives targeting more recycling, with EfW playing an important role in treating combustible waste which cannot be, or is not, recycled.”
“We look forward to working closely with Attero management to further invest in the growth opportunities this offers.”
Hamish Mackenzie
DWS
Hamish Mackenzie, head of infrastructure at DWS remarked: “We look forward to working closely with Attero management to further invest in the growth opportunities this offers. We are delighted to be making our first investment in the waste sector and our first in the Netherlands.”
Attero chief executive, Paul Ganzeboom said: “I see 3i/DWS as an excellent new shareholder with a long-term focus within which Attero can continue its strategy in the field of production of energy and raw materials from waste, growth and operational excellence.”
History
Attero was originally owned by Dutch public shareholders from six provinces and 116 municipalities. Not all public shareholders wanted to sell the business but in 2014 it was sold to Waterland for about 170 million Euros. There were some concerns about the price for which Waterland acquired Attero with some in the municipal sector considering it was too low and that some salaries in the new privately-owned company were high.
Waterland claimed on 30 March 2018 that “The position of Attero has been strengthened in recent years, partly through the realization of a balanced long-term contract portfolio, through extensive and innovative investments in the production of sustainable energy and the recycling of plastics, and by focusing on cost efficiency and operational excellence. Attero is market leader in various areas, including the processing of residual waste in its waste-to-energy plants, the sustainable processing of organic waste in compost and the production of green gas, and the management and exploitation of landfills. The financial position of Attero is very solid, and this will not change as a result of the proposed transaction.”
Related links
Attero
3i Infrastructure
DWS
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Source: letsrecycle.com Waste Managment
