Shanks, which has its headquarters in Milton Keynes, said that if completed, the deal would see the creation of a strong market-leading business in the Benelux region (Belgium, Netherlands and Luxembourg).
Currently, van Gansewinkel is considered the largest waste and recycling business in the region while Shanks is third in size. By coming together, the pair will have a stronger and complementary market share with the potential also to look for new business across borders.
The ‘reverse’ takeover by Shanks would value the privately-owned Netherlands and Belgium recycling business at an estimated €440 million (£375 million) – and significantly expand the size of the Group.
Shares
If approved, the deal would see Shanks shareholders receive €306 million (£261 million) in cash and a share consideration of 29% of the new Combined Group. Shanks had previously asked for its shares to be suspended in May 2016 while it considered buying Van Gansewinkel (see letsrecycle.com story).
In a statement today (7 July) Shanks highlighted the synergies and complementary aspects of the businesses coming together. The company said: “A core element of Shanks’ strategy is to actively manage the Group’s portfolio to improve returns and accelerate growth through the acquisition of value-enhancing businesses (and/or the disposal of non-core assets), particularly where strong synergies exist with existing Shanks businesses. Given the structure and conditions in the Benelux waste management market, the Board has for a long time believed that a merger with VGG would transform and enhance the Company’s position.”
With regard to the activities of the two companies’ activities, Shanks is seen as particularly strong in the hazardous waste and industrial cleaning sector in the Benelux region and also a significant involvement in organics.
Recycling
While Van Gansewinkel also has hazardous waste interests, it has many large commercial accounts and also has particular expertise in the recycling sector, notably in glass and electronics. And, it also has interests in building and construction waste where Shanks too is also operational.
Neither party has energy from waste facilities in the region but by coming together, observers consider they will become an important market provider of fuel for the plants – Shanks is already an exporter of RDF from the UK.
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