Deal agreed for the purchase of Biffa for £1.3bn
An agreement has been reached for the purchase of waste management firm Biffa by Bears Bidco, run by ECP, for £1.3bn.
Bidco, a new firm controlled by funds operated by Energy Capital Partners’, will make the purchase subject in the fourth quarter of 2022.
The acquisition was announced by the two companies’ board of directors this morning, with ECP looking to expand its investments in energy transition and sustainability-focussed firms.
The deal was made with a view to Biffa having “ patient, sustained capital investment” amid the current economic climate,
“Since IPO in October 2016, the successful pursuit of our growth strategy has seen Biffa ..oversee a significant investment programme across UK green economy infrastructure, strengthening its capabilities as one of the leading sustainable waste managers in the UK”, Ken Lever, Chair of Biffa, said.
“ECP is an experienced investor in environmental infrastructure and sustainability assets and offers a supportive environment to accelerate “ Biffa’s growth, he added.
After the original £1.4bn offer in June, he said the “lower than the proposal ..represents a compelling opportunity, particularly in a weakening economic environment, for shareholders to realise, in cash and with certainty, the potential for future value creation.”
Andrew Gilbert, Partner of ECP, the firm is “excited to begin this long-term partnership with Biffa and its extremely talented employees and leadership.”
We intend for Biffa to remain focused on providing the high level of service to which its customers have become accustomed and look forward to supporting Biffa’s strategic initiatives, development, growth and industry leadership.”