September 3 (Renewables Now) - UK water utility Severn Trent Water last week said it is acquiring Agrivert Holdings Ltd, a company dealing in renewable energy generation from food waste, strengthening its anaerobic digestion (AD) operations.
Severn Trent is buying Agrivert Holdings Ltd and its subsidiaries encompassing the UK operating businesses, for an enterprise value of GBP 120 million (USD 154m/EUR 133m), subject to customary closing adjustments and, including the repayment of some GBP 60 million of debt. It will fund the deal, which is expected to be completed by the end of 2018, with existing cash and bank facilities.
Agrivert UK has five food waste AD plants and five green and comingled waste composting sites. These will become part of Severn Trent's non-regulated Green Power Business and will add to the company's two operating food waste AD plants at East Birmingham and West Birmingham and one under construction in Derby.
The deal will provide Severn Trent with 106 GWh of annual energy generation, which will complement the 354 GWh that the company currently produces from its energy and renewables portfolio.
"Renewable energy is strategically important to Seven Trent and the UK as a whole as we work towards achieving our decarbonisation targets and delivering attractive shareholder returns," Severn Trent chief executive Liv Garfield said and added that the utility has partnered with Agrivert UK on a number of projects in recent years.
According to Agrivert's chief executive Alexander Maddan, the transaction will allow Agrivert Ltd to focus on the engineering and overseas markets.
(GBP 1 = USD 1.287/EUR 1.109)