Cory Environmental sells brokerage business to Reconomy
Cory Environmental Group ("Cory"), one of the UK’s leading resource management, recycling and energy recovery companies and currently majority controlled by investment funds indirectly managed by Strategic Value Partners LLC (“SVPGlobal”), with other investors including EQT Services (UK) Limited (“EQT Credit II”) and Commerzbank, announces today the sale of its national waste brokerage businesses (“Brokerage”) to Reconomy.
Brokerage, which includes UK Nationwide Skip Hire Limited trading as Skippy Nationwide, Skips @ Home Limited trading as Skip Hire UK and Cory Environmental Recycling Services Limited, reported revenues of £13m for the year ending 2015 employing 38 people.
This sale is a result of a strategic review launched by Cory’s Board which concluded that the brokerage business was no longer core to Cory and that the long term future of Brokerage would therefore best be secured under new ownership.
Brokerage is an important acquisition for Reconomy, complimenting their existing customer base and geographic footprint, and affirms their position as the UK’s leading provider of outsourced waste management services. The transaction came into effect on 21 July 2016.
Nicholas Pollard, Cory’s Group CEO commented:
“This transaction follows the recent sale of the collections business and is in keeping with our strategy to simplify our Group structure and concentrate on our core businesses of the Landfill & Gas business and the Riverside Resource Recovery & London Operations business. Both of these businesses invest in development and operation of infrastructure to provide waste management, materials recycling, waste disposal and energy generation. Reconomy is an excellent home for Brokerage and we wish them every success for the future.”
Cory were advised by Pinsent Masons and EY Corporate Finance.
Notes to Editors:
About Cory Environmental Group
Cory Environmental Group (“Cory”) is currently majority owned by funds advised or managed by Strategic Value Partners LLC or its affiliates. The business is well known and recognisable for its trademark Riverside infrastructure, comprising a large fleet of tugs and barges which sustainably transport over 500,000 tonnes of London’s municipal and commercial waste every year to their energy from waste (EfW) facility, producing electricity and recycled construction materials directly from the waste stream.
About Strategic Value Partners LLC
SVPGlobal was founded in 2001 by Victor Khosla. With approximately $4.5 billion in assets under management, SVPGlobal is a leading global investment firm with primary offices in Greenwich (CT), London, Frankfurt and Tokyo, focused on deep value investments. SVPGlobal seeks to create value in its investments through its substantial industry, restructuring and operating experience.
About EQT and EQT Credit
EQT is a leading global private equity group with approximately EUR 30 billion in raised capital. EQT has portfolio companies in Europe, Asia and the US with total sales of more than EUR 15 billion and 100,000 employees. EQT Credit II forms part of the EQT Credit platform. The EQT Credit platform includes Senior Debt, Mid-Market Credit and Credit Opportunities strategies.
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This sale is a result of a strategic review launched by Cory’s Board.