Water utility Severn Trent is buying Agrivert Holdings and its subsidiaries containing the UK operating businesses for £120m, with the transaction expected to be completed by the end of 2018.
Agrivert UK, founded in 1994, has five well-established food waste anaerobic digestion (AD) plants – including one in north London (pictured at its official opening) – as well as five green and commingled waste composting sites. Its UK operations will be added to Severn Trent’s existing non-regulated Green Power Business and reported within its Business Services segment.
According to a statement released by Severn Trent, the plants will complement its two operating food waste AD plants at East Birmingham (Coleshill) and West Birmingham (Roundhill) and one under construction in Derby, which is on track for commissioning by the end of the financial year.
The acquisition adds 106GWh a year of energy generation to the 354GWh currently produced by the utility’s broader energy and renewables portfolio. It will take Severn Trent’s investment in energy and renewables to approximately £300m by 2020.
Liv Garfield, chief executive, said: “Renewable energy is strategically important to Severn Trent and the UK as a whole as we work towards achieving our decarbonisation targets and delivering attractive shareholder returns. Agrivert UK strengthens our established presence in AD where we have been a leader in the water sector for many years.”
Alexander Maddan, Agrivert’s chief executive said: “As we finalised the latest expansion of our AD fleet, it was a natural juncture to create an even more competitive business by combining Agrivert UK with the Severn Trent Group. Our familiarity with the Severn Trent Group gives us great confidence that the Agrivert UK business is being transferred into good hands, allowing Agrivert Limited to concentrate on the engineering and overseas markets.”
- Earlier this year, independent AD operator Biogen acquired Tamar Energy