Investors step in with £341m offer for waste management firm Augean
A pair of infrastructure investors have put forward a £341.2m acquisition bid for Wetherby-based hazardous waste management company, Augean.
The offer has been made by Eleia, which comprises investment funds managed by Ancala Partners LLP and investment funds managed by Fiera Infrastructure Inc.
This offer is now being recommended to Augean’s shareholders, in place of a previous bid agreed by Morgan Stanley Infrastructure (MSIP) which had valued Augean at between £293.9m and £314.9m.
Under the terms of the new, larger offer, Augean shareholders will be entitled to receive 325p for each scheme share.
In an update published this morning, Augean notes: “The terms of the offer represent an attractive premium for Augean shareholders over the terms of the MSIP offer and accordingly the Augean directors urge Augean shareholders to take no action in respect of the MSIP offer.”
Jim Meredith, executive chairman Augean
Jim Meredith, executive chairman of Augean, added: “The Augean Board believes Ancala and Fiera Instructure are well-respected as long-term investors in the infrastructure sector and will be able to support Augean’s strategy of providing the highest level of customer service and safe operations in niche and highly regulated hazardous waste markets.
“We recognise the increase in the price offered to Augean shareholders under the offer when compared with the MSIP offer and have accordingly recommended the offer to Augean shareholders.”
Ancala is an independent infrastructure investment manager established in 2010. Its strategy is to deliver stable risk-adjusted returns by investing in essential, mid-market infrastructure businesses in Europe.
Karen Dolenec, partner of Ancala, said: “Augean provides essential and responsible hazardous waste management services to key private and governmental infrastructure operators.
“Ancala has been impressed by the high quality of the team and operations and is excited to support the company in expanding its role in this critical part of an effective waste management ecosystem.”
Fiera Infrastructure is a global mid-market, infrastructure investment manager headquartered in Toronto, Canada.
So far it has invested in more than 39 infrastructure assets across waste management, utilities, telecommunications, transportation, renewables and public-private partnerships.
Alina Osorio, president of Fiera Infrastructure, said: “Augean is a leading provider of hazardous waste management services in the UK, offering essential and responsible treatment and disposal solutions for hazardous materials.
“Fiera Infrastructure is excited to work alongside the management team at Augean to support the company in its next stage of growth.”
