Renewi's Acquisition: A Strategic Play for Sustainable Growth

The waste management and recycling sector has long been an under-appreciated investment opportunity, offering stable cash flows and long-term growth potential. One company that has caught the eye of savvy investors is Renewi plc (RWI), a leading European waste-to-product company. In a strategic move, Renewi has agreed to a recommended final cash acquisition by Earth Bidco B.V. (BidCo), a newly formed company indirectly controlled by Macquarie European Infrastructure Fund 7 SCSp (MEIF 7) and BCI UK IRR Limited (BCI UK). This acquisition, valued at approximately £707 million, represents an attractive opportunity for the Consortium to invest in a leading waste-to-product company and support its growth.

Renewi's waste-to-product strategy and its role in advancing the EU's Circular Economy Action Plan make it an attractive investment for the Consortium. The company's expertise in waste management and recycling, coupled with its commitment to sustainability and resource conservation, aligns with the Consortium's commitment to innovation and enabling communities to achieve a sustainable future. By partnering with Renewi, the Consortium will bring a wealth of experience and a proven track record in deploying capital to drive growth and operational excellence, further supporting the company's strategic objectives.

The Acquisition Price represents a premium of approximately 57% to the Closing Price of 554 pence per Renewi Share on 27 November 2024 and 41% to the volume weighted average price of 615 pence per Renewi Share for the three-month period ended 27 November 2024. This premium reflects the Consortium's confidence in Renewi's growth prospects and its strategic value as a leading waste-to-product company.

Renewi's Chairman, Ben Verwaayen, welcomed the acquisition, stating that it represents a material premium for shareholders and an opportunity to further deliver on the company's strategy with the support of Macquarie and BCI. Martin Bradley, Head of Infrastructure at Macquarie Asset Management in EMEA, and Lincoln Webb, Executive Vice President & Global Head, Infrastructure & Renewable Resources at BCI, both expressed their enthusiasm for the acquisition and their commitment to supporting Renewi's growth and strategic objectives.

In conclusion, the acquisition of Renewi by the Consortium is a strategic play that aligns with the user's investment philosophy of favoring stable, predictable, and consistent growth. The acquisition offers an attractive opportunity to invest in a leading waste-to-product company with a strong track record and a commitment to sustainability. With the support of experienced investors like Macquarie Asset Management and BCI UK IRR Limited, Renewi is well-positioned to continue its growth trajectory and contribute to a more sustainable future.