3i Infrastructure is to invest €201 million in the acquisition of a 50% stake in Dutch waste management and energy recovery operator, Attero.
3i Infrastructure said that it will invest alongside DWS’s infrastructure investment business (formerly Deutsche Asset Management) to acquire Attero from Waterland, a Dutch private equity fund. 3i approached Waterland in 2017 and the transaction was conducted on a bilateral basis. Completion is subject to certain third-party approvals.
Attero owns two energy from waste (plants, two sorting and pre-treatment facilities, six anaerobic digestion facilities, seven composting facilities and ten landfills.
The waste to energy business accounts for c. 80% of revenues of which a quarter relates to selling electricity and heat. Attero sources its waste from a diverse mix of domestic municipalities, commercial and industrial customers, as well as a number of UK and Irish exporters. It has processing capacity of c. 1.8 million tonnes.
According to 3i Infrastructure, Attero has good revenue visibility due to its long-term contracts with customers. It is well positioned within the Dutch market with two of the largest and most efficient waste to energy plants in the country, strategically positioned with good port, road and rail access for both import and domestic waste supply.
“We believe the investment will deliver strong cash yields for our shareholders, and complements our existing portfolio well through providing further geographic and sector diversity,” said Richard Laing, Chairman, 3i Infrastructure plc.
Phil White, Managing Partner and Head of Infrastructure, 3i Investments plc, Investment Adviser to the Company, added: “Attero is strongly positioned to benefit from favourable underlying trends in the European waste market, driven by EU directives targeting more recycling, with EfW playing an important role in treating combustible waste which cannot be, or is not, recycled.”
Hamish Mackenzie, Head of Infrastructure at DWS said, commented “Attero has a unique position in the European waste value chain, offering the full range of recycling, treatment and disposal solutions and is well placed to deliver the objectives of the EC’s Circular Economy package.”
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