Bidders circling for biodiesel giant

THE chemical engineer founder of one of the UK’s largest private companies could pocket an £80m windfall by selling the business.

Biodiesel firm Greenergy, co-founded in 1992 by its chief executive Michael Owens, 53, is on the radar of several private equity funds and rival companies with a value between £400m and £500m being touted.

Greenergy has asked investment bank ING to look at options, one of which is a sale.

Bidders in the running are said to include private equity companies like Carlyle and CVC, and industry rivals Vitol and Valero.

Owens has a 16% stake in the company alongside Tesco’s pension fund, which has 34.5% and Jersey-registered Seerave Holdings and co-founder David Rees has 23.7%.

The company enjoyed a turnover of £14.1bn last year, but is virtually anonymous outside the energy industry. Underlying profits in 2014 hit £30.3m and have continued to grow since then.

As well as in Didsbury, Manchester, Greenergy has offices in London, Houston in the US and Saint John in New Brunswick, Canada.

Greenergy is Europe’s largest manufacturer of biodiesel from waste, with a plant in Immingham, Lincolnshire.