Beauparc receiving takeover offers from Blackstone

The largest waste company in Ireland, Beauparc, has attracted takeover approaches from dozens of private equity firms after its minority shareholder, Blackstone, set about putting its stake on the market late last year.

The approaches may result in an outright purchase of the owner of the Panda and Greenstar waste firms for as much as €1 billion, sources said.

This transaction follows other PE-deals in the waste management field. British water utility Pennon Group Plc sold its waste and recycling business, Viridor, to US private equity group KKR & Co. Inc. last March for €4.7 billion at a robust valuation of 18.5 times EBITDA.

The latest set of financial results for Beauparc Utilities, the main operating company, show that its pretax profit rose to €28.1 million in 2019 from €18.7 million for the previous year, as revenues soared 40 per cent to €508.4 million.

The company spent €19.1 million on acquisitions during the year and declared dividends of €60.5 million.

Waste and recycling companies Mergers

Waste and recycling companies completed a series of mergers and acquisitions throughout 2020 despite economic disruptions from COVID-19-related shutdowns.

Global private equity firm Arcapita purchased a controlling interest in Waste Harmonics in February 2020.

CEO Michael Hess provided insight: “It’s probably more of a recapitalization than an acquisition. Back in July 2015, I brought in a private equity (PE) partner, Prospect Partners out of Chicago, a great small- to mid-market PE firm. And the timing just seemed to be right.”

He added, “we have found ourselves with a new private equity partner that is excited about our business and the industry space that we’re in and, from my perspective, one that has some very deep pockets that will allow us to execute on an acquisition and growth strategy that we have over the next five years.”