Biffa, a UK-listed waste management company, has accepted a discounted £1.3 billion (about $1.4 billion) buyout offer from US-based Energy Capital Partners. The deal comes as Britain endures a series of economic shocks, with the pound experiencing record lows against the dollar.
There have been 10 PE-backed take-private deals involving UK-listed companies so far this year, worth a total of €14.59 billion (about $14.3 billion). While this year's total may lag the €27.13 billion deployed across 14 deals in 2021, the pipeline for such transactions is expected to remain strong amid a renewed downgrading of public market valuations.
ECP's final offer of £4.10 a share represents a 28% premium over the company's closing price June 6, when the offer period began. However, it's a roughly 8% discount on the original £4.45-per-share bid. Nevertheless, Biffa has recommended the board accept the new offer.
In its statement to the market, ECP—which typically invests in energy transition, environmental infrastructure and sustainability-focused companies—has suggested funds will be available for additional acquisitions as it looks to consolidate the fragmented industrial and commercial waste collection industry.
Featured image by Travers Lewis/Shutterstock
This article originally appeared on PitchBook News
Unlock stock picks and a broker-level newsfeed that powers Wall Street.
Energy Capital bags Biffa amid UK valuations decline
Terms and Privacy Policy