The deal, which was first announced in December 2020 (see letsrecycle.com story), is for an undisclosed sum and includes the sale of all seven of Wheelabrator’s “strategically located waste-to-energy facilities”.
This includes stakes in the two Kemsley plants in Kent and Ferrybridge 1 and 2, as well as other facilities in North Wales, West Bromwich and West Yorkshire.
FSI, formerly known as First State Investments, has headquarters in Australia and is a global asset management firm.
Julia Watsford, managing director of Wheelabrator UK, said: “We look forward to working with FSI to continue to provide essential waste treatment services to our customers and communities, and develop critical waste-to-energy infrastructure and support the green recovery in the UK.
“We are excited to be working much more closely with the team at Multifuel Energy Limited to continue to ‘make a difference today to deliver a cleaner tomorrow’ – powering green communities and the circular economy. I would like to thank the entire team at Wheelabrator UK for their efforts throughout the sale process and during the last few months supporting the transition to our new shareholders.”
Deal
The completion today follows the acquisition of the SSE shareholding on 7 January. FSI says intends to integrate the two companies to form a single combined company. The combined entity will “further strengthen its standing as the largest pure play waste-to-energy operator in the UK”.
FSI has also reaffirmed its commitment to the three advanced development projects now 100% under their ownership, Multifuel Energy Limited Skelton Grange in Yorkshire, Wheelabrator Kelvin in West Bromwich and Wheelabrator Kemsley North in Sittingbourne, with all three projects expected to reach financial close in 2021.
‘Delighted’
Niall Mills, managing partner of global infrastructure at FSI, said: “We are delighted with the successful closing of the transaction. The acquisition of Wheelabrator UK is fully aligned with our strategy to invest in critical infrastructure assets with a strong focus on sustainability.
“The acquisition of Wheelabrator U.K. is fully aligned with our strategy to invest in critical infrastructure assets”
“We have been impressed with the company’s successful track record in developing and operating a portfolio of best-in-class waste-to-energy plants across the UK. As a long-term investor, we look forward to supporting management in growing the portfolio further, and are excited about the journey ahead”.
Credit Suisse and J.P. Morgan served as financial advisors to Wheelabrator UK on the sale and Linklaters served as legal counsel. Jefferies and Macquarie Capital served as financial advisors to FSI and Latham & Watkins served as lead legal counsel.
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