Bourne-based recycling business Ballast Phoenix has been bought by Netherlands private equity firm Waterland from H2 Equity in a deal financed by Lloyds Bank Commercial Banking.
The new senior debt package of £42.5m was provided by Lloyds Bank, which supplied £25m, and by Alberta Investment Management Corporation (AIMCo), one of Canada’s largest institutional investment managers, on behalf of certain of its clients which provided £17.5million. Ballast Phoenix, based in Bourne, Lincolnshire, processes and recycles the ashes and metals produced by Energy from Waste (EfW) plants during the incineration process. It creates sustainable aggregates and recycled metals, thus avoiding any requirement for the use of landfill.
The business has seen significant growth during the last 12 months, having secured a number of new long-term contracts the company will expand the number of recycling and ash processing plants from 7 to 12 in the next 12 months.Waterland is also the owner of Attero NV, one of the leading EfW and recycling businesses in the Netherlands.
Catalyst Corporate Finance led the refinancing process for Waterland, advising on the structuring, selection of the preferred funding partners and negotiation of the terms of the new facilities. Mark Wilson, partner and head of waste & renewables, and Andrew Shellard, head of debt capital markets, led the deal for Catalyst. Wilson said: “We are extremely pleased to have supported Waterland and Ballast Phoenix in securing an innovative funding package to support the exciting growth prospects for the business. Ballast Phoenix is the market leader in this part of the EfW industry and, with strong funding partners, is very well placed to execute its ambitious plans.”
Martin Cordey, director at Lloyds Bank Commercial Banking, said: “We have a long-term relationship with Ballast Phoenix and have been impressed by the business’ growth and ambition over the last year. We are pleased to again back the management team as it embarks on the next stage of its growth strategy and helps UK businesses meet targets to reduce the amount of waste sent to landfill. EfW is a good alternative energy source and the business has positioned itself as the UK’s market leader of EfW materials recycling.”