A consortium has bid £520m to take control of troubled waste management firm Biffa, according media reports.
The funding group, comprising US EfW firm Chinook Urban Mining, JP Morgan and Clearbrook Capital, has reportedly made a cash offer for the company, which has struggled to grow in recent years.
Biffa, which is £1bn in debt, is currently owned by venture capital firms Montagu Private Equity and Global Infrastructure Partners.
Reports say talks with the consortium have been under way for several weeks and details were revealed to lenders last week.
Biffa was acquired by the buyout consortium in 2008 for £1.2bn. It then bought rival firm Greenstar in 2010 for £135m.
A source close to the negotiations told the Guardian: “This is a serious offer and the only firm bid on the table, but some of the bankers appear to be blocking it and it is difficult to get a consensus among so many banks”.
Who are the bidders:
- Chinook Urban Mining is owned by the US waste firm Chinook Sciences Group which includes metals recycling and energy-from-waste divisions.The company specialises in gasification technology and has installed its RODECS system in plants in nine counties on four continents.Chinook recently announced an expansion of its existing operations in Nottingham to include an “End Stage Recycling” gasification EfW facility.
- Clearbrook Capital is a London-based private equity firm which specialises in property, infrastructure and asset management investments.
- JP Morgan is one of the largest banks in the USA, and a major provider of financial services.