Organics recycling firm Agrivert is to be bought by the utilities company Severn Trent in a deal totalling £120 million, the two companies have announced today (30 August).
The deal covers five food waste anaerobic digestion (AD) plants and five green and comingled waste composting sites but excludes Agrivert’s engineering and overseas activities.
The new sites will be added to Severn Trent’s existing, non-regulated green power business and, the company said, will help to reduce its power costs by increasing the amount of energy it can self-generate.
According to Severn Trent, over the last few years Agrivert has focused heavily on opening up overseas markets. Alexander Maddan, who founded Agrivert along with his exiting senior management team will continue to work within the company.
Agrivert also has a history of supplying the waste water sector with design and build engineering solutions and it will continue offering these services in the UK and abroad, the company said.
Commenting on the move, Agrivert’s Alexander Maddan, said: “As we finalised the latest expansion of our AD fleet, it was a natural juncture to create an even more competitive business by combining Agrivert UK with the Severn Trent Group.
“Our familiarity with the Severn Trent Group gives us great confidence that the Agrivert UK business is being transferred into good hands, allowing Agrivert to concentrate on the engineering and overseas markets.”Alexander Maddan
“Our familiarity with the Severn Trent Group gives us great confidence that the Agrivert UK business is being transferred into good hands, allowing Agrivert to concentrate on the engineering and overseas markets.”
Severn Trent’s Green Power business already has two operational food waste plants – developed by Agrivert – at East Birmingham near Coleshill and West Birmingham near Stourbridge, with a third plant being built in Derby.
The acquisition will add 106 GWh to Severn Trent’s broader energy and renewables portfolio, the company said.
Liv Garfield, Severn Trent chief executive, said: “We’re delighted to welcome Agrivert UK into the Severn Trent family. Renewable energy is important to us and to the UK as a whole as it works towards achieving decarbonisation targets. The new plants strengthen our presence in anaerobic digestion, where we’ve been leaders in the water sector for a number of years.
“We’ve already worked in partnership with Agrivert on a number of projects in recent years and have been hugely impressed by their engineering capability and expertise.”
Agrivert specialises in operating facilities to process and recycle organic matter. The company reports to have processed over 310,000 tonnes of solid organic waste in 2017. Its portfolio includes two food AD plants in South Wales and North London, which were completed in the ‘record time’ of nine months (see letsrecycle.com story).
Established in 2009, Severn Trent Green Power – part of the Business Services segment of Severn Trent Plc – has grown to include two food waste AD plants, a crop AD plant, six wind turbines and 33 solar sites. In the last full financial year, Severn Trent’s Food Waste business recorded revenue of £13 million and EBITDA of £3 million.