PE-backed Biffa attracts £520m bid

The group's private equity owners, Montagu and Global Infrastructure Partners, have received a joint bid from recycling specialist Chinook Urban Mining, private equity investor Clearbrook Capital and JP Morgan, according to several reports.

Montagu Private Equity and Global Infrastructure Partners took Biffa private for more than £1.2bn in 2008. A debt package of £1.09bn was provided by a consortium of banks comprising Bank of Scotland, Barclays Capital, Credit Suisse, HSBC, Royal Bank of Scotland and the investment banking arm of Barclays. Montagu and GIP each secured 43% of the newco shares, equalling approximately £306m each.

Biffa has since been struggling with its debt burden and an unfavourable trading environment. The group made a pre-tax loss of £127.5m on revenues of £775.1m in 2011, according to the Guardian newspaper. Factors for this trough are understood to include reduced waste volumes due to the downturn, as well as a growing trend for large businesses to manage their own waste.

The company's owners were said to have written their investment down to zero earlier in the year.

A spokesperson for Montagu was not available for comment at this time.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• UK / Ireland
• Support services
• United Kingdom
• Montagu Private Equity