Cerberus European Investments — a subsidiary of New York-based private investment group, Cerberus Capital Management — has reached agreement with the Irish company’s receiver, David Carson of Deloitte, to purchase the business.
It is unclear how much Cerberus is paying for Greenstar, which has revenues of over €100m, but had debts of over €80m when it went into receivership last August.
However, the company, which has been advised on the deal by international law firm, Eversheds, has said that, once the deal concludes in the coming months, it intends to maintain Greenstar’s market leading position in Ireland and for it “to continue and expand upon its leading role in the evolving Irish waste management industry”.
“We look forward to building on the changes made in the company and the company’s good base of commercial and household customers,” said Mark Keough, who is set to become the new chief executive of Greenstar once the deal is concluded.
“We will continue to employ best practices in the waste management sector and add value to our customers.
“These are core principles for us, as is our commitment to providing a full range of recycling services and to operating in an environmentally-sensitive manner,” he added.
Greenstar has about 85,000 domestic and commercial customers and employed around 800 people when it went into receivership.
It is understood that widespread salary deductions marked part of the changes undertaken in order to attract a buyer.
“The Greenstar business is complex but plays a vital role in Ireland. Working on a solution to the business has been challenging and changes in the company were required to make it a sustainable business,” David Carson said yesterday, before thanking both Greenstar’s employees and customers for their support during the receivership process.
He added he was pleased to have found “a good solution for a high-quality business” and said he hoped the transaction would be completed during the current quarter.