Agilitas, a pan-European mid-market private equity firm, has invested in the management buyout of the waste management businesses of Impetus Waste Management Holdings Ltd. The sum involved is not being disclosed.
Impetus – a leading waste management and property group in the North East – was founded in 2003 and four years later Ian Hunter became the majority shareholder.
Along with the existing management team he has grown the group to become one of the largest waste management companies in the region.
The business handles more than 500,000 tonnes per annum of commercial, industrial and municipal waste through its two waste transfer stations at Wallsend and Washington and its two landfill sites at Cowpen Bewley and Teesport.
As part of the company’s strategy for diversion away from landfills, Impetus recently signed a 20-year agreement to supply waste to Air Products Ltd. Air Products will construct and operate a waste-to-energy plant at the North Tees Reclamation Pond site, where Impetus will build a new waste transfer station, adjacent to the Air Product plant with a capacity of 600,000 tonnes per annum.
This could meant that previously landfilled waste might possibly be converted into refuse-derived fuel, creating renewable energy for some 50,000 homes.
Martin Calderbank, founding partner at Agilitas, said: “Impetusis an organisation at the crossroads of transformational change andwe see huge opportunities inhelping the management team develop their business in waste to energy.”
Richard Lord, managing director of Impetus, added: “With landfill sites in the North East likely to be full by the end of the decade, it is vital to find a new approach.
“I am delighted to be working with Agilitas in the development of a new defensible green business.”
Torbjorn Midsem, partner at Agilitas and joining Martin Calderbank on the board of Impetus, said: “This investment enables Impetus to seize opportunities created by two major trends – the need for new solutions for waste, and the need for new sources of energy.”
Agilitas was advised on this transaction by Zolfo Cooper for finance; Marsh for insurance; SKM Enviros for environmental matters; PwC for accounting and tax; LRS on commercial considerations; and Ashurst for legal affairs.
In addition, debt finance was provided by Alcentra and Santander Corporate and Commercial.