NTR sells US subsidiary for €132m to exit waste management
NTR announced the sale of its US recycling company Greenstar for €132 million yesterday, marking its full exit from the sustainable waste management sector.
The $180 million acquisition by WM Recycle America, a subsidiary of Waste Management Incorporated, will rise to $220million (€161 million) by 2018 should the company satisfy various agreed performance criteria.
The deal is central to NTR’s strategy to reposition itself entirely in the renewable energy market as revealed at its AGM last September.
It confirmed the closing of the deal for a gross consideration of $180 million which, “after purchase price reduction for certain costs, third party debt and other deductions, results in an initial net receipt of $129 million”.
Greenstar is the largest private recycler in the US; its subsidiaries manage about 1.5 million tonnes of material for more than 12,000 customers.
It is separate from the Irish waste management outfit Greenstar which, while previously run by NTR, was placed in receivership last August.
Welcoming the US deal yesterday, NTR chief executive Michael McNicholas said: “This sale makes strategic sense for us, in the context of consolidating our portfolio and allowing us to focus on our strategy of driving future growth in the renewable energy sector.
“NTR has now fully exited the sustainable waste management sector, in line with the strategic plan we announced at last year’s AGM. NTR’s financial capability has been further strengthened and NTR is well positioned for the future.”
Losses at the company fell to €89 million in the 12 months to March 31st last year from €381 million in fiscal 2011. Those record losses were partly the result of a series of reductions in the value of assets and businesses held by NTR, including its failed US solar power venture.