Kier buys 50% stake in BiogenGreenfinch

Services giant Kier has bought a 50% stake in AD specialist BiogenGreenfinch fromits parent company, Bedfordia Group.

Under the deal, announced on the stock exchange this morning (August 2), Kier is investing up to 24.4 million in the business and will become a 50/50 joint venture partner alongside Bedfordia.

Bedfordia Group is a privately owned family business based in Bedfordshire with an annual turnover of 130m, while Kier is a leading construction, services and property group with an annual revenue of 2.2 billion.

Earlier this year, in-vessel composting specialist TEG Group plc revealed that it was in preliminary discussions with Kier regarding the possible sale of its business, however, Kier later sought to distance itself from this.

To mark the investment, BiogenGreenfinch is shortening its name from BiogenGreenfinch to Biogen in a bid to strengthen its brand. The company was previously called Biogen before 2008, when it merged with fellow AD specialist Greenfinch (see letsrecycle.com story).

The new companys board will comprise three members from Bedfordia, three from Kier and two Biogen executive directors.

As part of the business growth strategy, Biogen will be investing in new AD plants nationally with the target of having nine fully operational plants by 2017.

John Ibbett, chairman of Bedfordia Group and Biogen said: This partnership confirms Biogens place at the forefront of the green energy industry. Kier recognises the demand for anaerobic digestion to recycle food waste, generate sustainable electricity and cut greenhouse emissions both now and for the foreseeable future.

“In addition to Biogens recognised experience and expertise in the food waste AD industry we are now able to benefit from Kiers considerable track record and skills in environmental services and construction to help us accelerate the roll out of our AD plant pipeline.

Strategy

Biogen will continue to operate as before, but expects to be better placed to pursue its growth strategy. The company provides food waste treatment services for local authorities, food retailers and food manufacturers and currently employs 60 people.

With two fully operational AD plants already in Bedfordshire and Northamptonshire and a pilot scale demonstration plant in Shropshire, the company has secured a further contract to build a plant in Caernarfon and is preferred bidder for another plant in Denbighshire. The business has an established design and process engineering base and research and development laboratory in Ludlow, Shropshire. The company claims to be the UKs only AD business which designs, builds and operates all of its own plants.

Paul Sheffield, chief executive of Kier, said: We are delighted to have made the investment in Biogen, which again demonstrates Kiers strategy of developing intelligent solutions for our clients and also our commitment to the green agenda. We see significant potential for the development of the business in the coming years.

Richard Barker, chief executive of Biogen, said the announcement was fantastic news for all its stakeholders.

He added: Our existing customers and local authorities can be confident that Biogen will have an enviable financial base going forward which underpins our acknowledged expertise in the industry. Our employees can feel proud of the part they have played in helping the business reach this point today, and can of course be secure in the knowledge that they are part of an organisation spearheading the growth of renewable energy generated from the food waste this country throws away.