Dublin-headquartered renewable energy group, NTR has completed its exit from the international waste management industry, via the $180m (€131.4m) sale of its Greenstar US business.
The subsidiary is being sold to WM Recycle America LLC — a subsidiary of the Houston-based/NYSE-quoted environmental services giant, Waste Management Inc.
The $180m consideration is a gross figure. After reduction for certain costs, third party debt and other assorted deductions; the net cost will be $129m. However, up to an additional $40m will be payable by the American company by 2018 should Greenstar US satisfy certain performance criteria.
NTR’s group chief executive, Michael McNicholas said that the move is in line with management’s strategic plan, announced at its 2012 agm, and is a sensible move.
“This represents the delivery of a major milestone in our plan to reposition the company. NTR’s financial capability has been further strengthened and (the business) is well-positioned for the future,” he added.
“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,” he said.
Mr McNicholas also noted that Greenstar’s US business has managed to build up “a valuable recycling platform”.
It was reported last week that staff at Greenstar Ireland — which went into receivership last year — will have to take a significant pay cut if the business is to be successfully sold. Since August, Greenstar (formerly owned by NTR) has been operated as a going concern by receiver David Carson of Deloitte.
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