NTR IS understood to be willing to sell Greenstar’s Irish, British and US waste-management operations separately to maximise its chances of offloading the business. The deadline for indicative bids was last Friday.
Bord Na Móna is reported to have lodged a bid. The State-owned company owns AES, one of Ireland’s biggest waste groups, and could face competition issues as Greenstar is the biggest waste company in this market.
Philip Lynch’s One51 is interested but might seek to cherry pick some of its Irish assets. One51 has a war chest of €250 million so funding shouldn’t be an issue. Biffa, Shanks and Sita, three of the biggest players in the British waste market, are all thought to have submitted offers.
A private equity group in Britain is also believed to have lodged its interest.
A price of up to €250 million is being sought by NTR, although financing a deal in the current climate won’t be easy. One source said Greenstar’s margins were squeezed in 2009 as recession hit. Its earnings before interest, taxes, depreciation and amortisation are in the high end of the €20 million to €30 million range.
Ironically, Greenstar has been one of Ireland’s most acquisitive companies, securing €120 million in new debt facilities last year.
