HSBC backs Landmedia in £27m energy deal

NORTH West waste management group Landmedia has spent £27.5m to buy out its partner in a major energy project north of the border.

Knutsford-based Landmedia was backed by HSBC Leveraged Finance in its deal with the listed Shanks Group that sees its take control of Avondale Environmental.

The deal values the whole of Avondale, together with the soil treatment facility at Kinneil Kerse, Scotland, at £61.8m.

Based in the Forth Valley, Avondale Environmental is one of Scotland’s leading waste management businesses licensed to accept non-hazardous, stabilised and hazardous waste. 

Methane collected from the site is then converted to electricity and fed directly into the National Grid providing enough energy to supply 8,000 homes.

Derek Cooper, director of  Landmedia said: “The acquisition of the remaining half of Avondale Environmental represents a major step for us in our ambition to develop a truly cutting edge, environmentally friendly facility.

“We have plans to extend and improve the technology at the site over the next two years in order to increase the amount of green energy we can supply to the National Grid.

“We are pleased that HSBC is wholeheartedly supportive of our growth strategy, and we look forward to working with them as the business develops.”

Julien Andrew, director, HSBC North West Leveraged Finance, said: “We are delighted to support Landmedia with funding to facilitate its long term plans. 

“This deal confirms HSBC’s continued commitment to support quality businesses and strong management teams with clear strategic vision.”

Law firm Pinsent Mason advised then bank on the deal, management were advised by HSBC.