Montagu in waste disposal

Montagu Private Equity, a London-based mid-market private equity firm, has sold waste management and recycling business Cory Environmental to a consortium of European investors for an enterprise value of £588m (€857m).

ABN AMRO Global Infrastructure Fund, Finpro SGPS and Santander Private Equity won the auction for the London-based waste management firm, beating reported competition from Ferrovial and Deutsche Bank’s asset management division, RREEF. Montagu was advised by Deutsche Bank in the transaction.

Montagu acquired Cory for £200m in April 2005 from Exel. The business operates 10 landfill sites across the UK and has contracts for recycling, street cleaning and waste collection. It also operates barges on the River Thames to transport waste. A 10th site in Kent was opened under Montagu’s ownership, with another due in the South West this year, while revenues have grown from £130m to more than £180m.

Jason Gatenby of Montagu said: “Working with Montagu, Cory’s management team has executed a highly successful growth strategy. They have grown the workforce by 20% in two years, increased revenues and long-term capacity by 50% and won important new clients”.