10th Sep 2019 09:52
(Alliance News) - Waste-to-product firm Renewi PLC said Tuesday it sold its Reym industrial cleaning unit to Remondis Group for EUR50 million in cash, as it focuses on its recycling business.
Renewi placed the unit up for sale in late 2018 at it looked to focus on its recycling business.
Remondis will pay EUR50 million in cash for Reym, giving it an enterprise value of EUR64 million when a number of debt-like items to be assumed by the buyer are taken into account.
"We are pleased to announce the successful sale of Reym," Renewi Chief Executive Officer Otto de Bont said. "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."
For the year ended March, Reym generated EUR4.5 million operating profit on revenue of EUR129.4 million. In total, Renewi generated a EUR85.5 million underlying operating profit on revenue of EUR1.78 billion.
"We have agreed long-term contracts to ensure continued customer service and waste inflows to ATM," de Bont added. "This disposal, combined with the previously announced sale of our Canadian business, will result in total cash proceeds of up to EUR115 million."
In June, Renewi sold its Canadian arm for an enterprise value of EUR72 million to Convent Capital.
Shares in Renewi were 1.1% higher at 31.00 pence in London on Tuesday.
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