Renewi plc announced that it has reached a binding agreement to sell its Canadian operations (Renewi Canada) to Convent Capital (Convent), an independent, sustainability-focused, Dutch investment firm based in Amsterdam, for an enterprise value of up to CAD 107.5m (US$ 80.52 million).

Renewi is a leading waste to product company that gives new life to used materials every day. They have more than 8,000 employees working at 200 sites across Europe and North America.

Upon completion, Renewi will receive initial cash consideration of approximately CAD 84m (US$ 62.92 million). Following completion, Convent will, with the assistance of Renewi, seek additional project financing for Renewi Canada’s operations, the successful execution of which will result in further consideration payable to Renewi up to a maximum of CAD 17.5m (US$ 13.10 million).

The enterprise value of CAD 107.5m (US$ 80.52 million) includes deferred consideration, debt-like items and capex adjustments. Immediately following completion, receipt of the initial consideration, less transaction costs, is expected to reduce the Group’s net debt to EBITDA ratio by approximately 0.23x.3,4.

Completion, which is subject to change of control approvals from relevant municipalities in Canada, is expected to take place before the end of September 2019.

Greenhill & Co. International LLP (“Greenhill”) was acting as financial adviser to Renewi.