No waste for Montagu

London-headquartered mid-market firm Montagu Private Equity is to sell its investment in UK waste management company, Cory Environmental, to a consortium of infrastructure funds for an enterprise value of £588m.

The business, which operates ten landfill sites across the UK as well performing recycling, street cleaning and waste collection for various local authorities across the country, will now be owned by Viking Consortium Holdings, a syndicate of ABN AMRO Global Infrastructure Fund, Finpro SGPS – a Portuguese infrastructure investor – and Santander Infrastructure – the Spanish firm that recently acquired a stake in Thames Water. Cory’s management team remains in place

Cory also operates barges on the River Thames, and is the only significant business in London to transport waste in this way. Around 15% of London’s waste is transferred by barge, removing 100,000 lorry movements per year from London’s roads.

Hans Meissner, CEO of ABN AMRO Infrastructure Capital Management, said: “The UK waste sector represents a substantial opportunity for future infrastructure investment as various UK and EU laws and regulations promote increased recycling and pre-treatment of waste streams. Viking looks forward to maintaining and building upon the success of Cory to date.”

Montagu bought the company in 2005 when it backed an MBO from Exel. Under Montagu’s watch, Cory has added one new landfill site – in Kent – with another site in the South West to be opened this year. Over the last two years the business has increased its landfill capacity by 50% and grown revenues from £130m to over £180m, and signed contracts with Gloucestershire County Council, Walsall MBC, Milton Keynes, Lincoln and Epping Forest. Cory has also substantially advanced the plans for a 585,000 tonnes per annum Energy from Waste facility, planned to be built in Belvedere, Kent.