UK - LDC-backed British Salt sells gas facility to EDF

The transaction is believed to include 10 pre-existing underground salt caverns. EDF would convert the caverns for natural gas storage as part of a major capital investment programme at the site, which would include a new gas processing facility at the British Salt Warmingham site. The brine that would be extracted during the development process will be used as feedstock for British Salt's manufacturing plant.

Cheshire-based British Salt, which employs 125 people, had a turnover of £35.6m for 2008. The company secured planning permission for the scheme in May last year and, according to reports, the company has permission to develop a further 11 salt cavities for a similar purpose in the future.

LDC backed the business in a £100m buyout from US Salt Holdings in June 2007. The sale of Britsh Salt's facility was said to be part of the private equity firm's original strategy in growing the value of the company.

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