Morgan Stanley to buy Augean for £315 million

The infrastructure arm of American investment bank Morgan Stanley has agreed to buy hazardous waste treatment specialist Augean for nearly £315 million.

A view from outside Morgan Stanley's building in Canary Wharf, London (picture: Shutterstock)

In an update to the stock market published on 30 July, Morgan Stanley Infrastructure Partners (MSIP) announced that its newly formed indirect subsidiary Antwerp Management Limited had agreed a price of £2.80 per share for Augean.

Formed in 2004, the Wetherby-based waste management company offers services including treatment, transfer, industrial services, landfill disposal, recovery and recycling.

It operates at locations across the UK, from Avonmouth to Shetland.

Commenting on the deal, Augean’s executive chairman Jim Meredith said: “The board of Augean believes that MSIP is well-respected as a long-term investor in the infrastructure sector and will be able to support Augean’s strategy of providing the highest level of customer service and safe operations in niche and highly regulated hazardous waste markets.

“This should allow the business to develop its services to an increasing breadth of customers while offering commensurate opportunities for our employees.”

Morgan Stanley first declared interest in acquiring Augean in a press release issued at the end of May this year.

The investment firm expects to complete the deal in “September or October 2021”.

‘Exposure’

Established in 2006, MSIP says it manages a “diverse portfolio” of infrastructure assets, predominantly in OECD countries. The sectors on which it focuses include power generation and utilities, natural gas, transportation, and digital infrastructure.

“We look forward to working with management, and contributing MSIP’s expertise, to support the company in further strengthening its industry leading position”

Alberto Donzelli, MSIP

In the UK, MSIP has invested in water company Affinity Water and rolling stock company Eversholt Rail Group.

MSIP says it is interested in “gaining exposure” in the UK’s hazardous waste market, and it views Augean as an “attractive company” within the sector.

MSIP describes Augean as a “high quality business with a network of strategically located facilities, a well-known and respected brand, and a customer base operating on long-term contracts”. The investment bank adds that it believes Augean’s management team to be “experienced and capable partners”.

Alberto Donzelli, managing director and co-head of European investing for MSIP, said: “Augean is a UK-based hazardous waste management operator with an excellent reputation amongst its customer base.

“We look forward to working with management, and contributing MSIP’s expertise, to support the company in further strengthening its industry leading position.”

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