200m Cory acquisition backed by equity firm Montagu

Montagu Private Equity has agreed to fund the buy-out from FTSE 100 logistics firm Exel plc. Cory told letsrecycle.com its waste contracts would continue with all assets of the business transferring with the management buy-out.

””It is very much a case of business as usual. We will honour all our current contracts and continue to seek out new opportunities to grow and develop our business.“
– David Riddle, Cory Environmental
The spokesman said: “It's no secret that we have been looking for a sale for a long time and that Exel has been looking to concentrate on its supply chain logistics.”

Asked about the implications for the Belvedere EfW plant, known as Riverside Resource Recovery (RRR), the spokesman said the project would not be affected in any way. The fact that Exel had a much larger balance sheet would not be a factor as Cory moved RRR forward.

The spokesman said: “We still have to go to the banks to fund RRR and with Montagu we have substantial experience. The main issue for Belvedere is getting planning permission for it.”

Contracts
Headquartered in London, Cory employs 1,085 people and is a 100% owned subsidiary of Exel. Cory owns nine landfill sites across the UK and has contracts for recycling, street cleaning and waste collection, managing over 3.5 million tonnes of waste each year. Cory won the 1 billion, 30-year disposal contract for the Western Riverside Waste Authority in London, for which the Belvedere plant will be the lynch-pin.

Cory has won several awards for its barge operations on the River Thames, which allows it to transport about 15% of London's waste reducing the need for road transport.

Cory’s executive chairman David Riddle, said: “It is very much a case of business as usual. We will honour all our current contracts and continue to seek out new opportunities to grow and develop our business.”

Montagu
Montagu Private Equity said Cory had an excellent record of revenue and profit growth, was well invested and had a strong position in its markets. The company said the acquisition fitted in with Montagu’s strategy of backing management buy-outs of non-core businesses led by “highly regarded management teams”. Recent acquisitions for Montagu have included electrical retailer Maplin and packaging firm LINPAC.

Montagu was attracted to Cory because of its contracted revenue streams, well-placed landfill sites and its expertise in all areas of waste management, it added.

Jason Gatenby, director at Montagu Private Equity, said: “We are delighted to be backing the management buyout of Cory. It has well-located landfill assets, excellent growth prospects and a very experienced and widely respected management team.”

Deutsche Bank AG London acted as financial adviser for Montagu Private Equity in connection with the transaction.