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Acquisition of PARO

24 May 2022

Renewi plc (LSE: RWI), the leading European waste-to-product business is pleased to announce that it has today reached conditional agreement to acquire 100% of the share capital of GMP Exploitatie BV (“Paro”), an Amsterdam based commercial waste and recycling business, from GMP Groep BV for an enterprise value of €67m, funded from the Group’s existing facilities.  The agreement is conditional on competition approval and completion of relevant employee representation procedures.

Paro operates from a large and well permitted processing facility located in the port area of Amsterdam and trades under the brands Paro, Cirqu and Buro Ontwerp & Omgeving (Buro).  On a 130,000m2 site with excellent road and water access, Paro operates two advanced sorting lines for processing mixed construction and demolition waste, as well as bulky household waste (c300kt).  In addition, a newly installed minerals classification and washing installation enables Paro to produce secondary construction materials from construction and demolition waste (c500kt).  With a recycling rate of around 78%, Paro will contribute towards Renewi’s objective to achieve a Group-wide 75% recycling rate by 2025.

For the year ended 31 December 2021, Paro reported revenues of €43m, EBITDA of €9.9m, operating profit of €7.3m and gross assets of €34.4m.  Cash consideration for Paro of €53.5m, including debt and other items, will be paid on completion.  This will be funded from the Group’s existing committed debt facilities, and is expected to increase leverage by around 0.2x initially.

The acquisition is expected to be earnings accretive for Renewi from the outset and will deliver synergies from site rationalisation, route and waste flow optimisation and other operational benefits as part of the Group’s Commercial division.  The acquisition is consistent with the Group’s strategy to grow market share, and its ambition to be the leading waste-to-product company in Europe’s most advanced circular economies. 

Otto de Bont, Chief Executive, commented:

We are delighted to announce our first major acquisition since the creation of Renewi in 2017.  The transaction strengthens our position in secondary material production and is fully aligned with our strategy to produce higher quality secondary materials.  It is expected to generate significant synergies with our existing operations in the Netherlands.”

Marc den Hartog, Managing Director Commercial Waste Netherlands, commented:

"We are delighted to welcome the Paro team and their customers to Renewi. Through its operating businesses and brands Paro has an excellent reputation.  Its operations will further strengthen our Waste to Product position, and extend our capabilities and service offering as a leading recycler."

Gerard Putman, Owner and General Director of Paro, commented:

"Since inception in 2006, Paro has grown significantly to become the key player it is today.  Our mission has been to contribute to a clean, safe and pleasant living environment, advising customers on planning and circularity issues, and providing processing and recycling of waste into raw secondary materials.  I believe that Renewi is the perfect acquirer and together our combined businesses will deliver a stronger, value added proposition to our customers.  I am proud to have led this business from start up to exit.”