A consortium of private equity funds are set to become the majority shareholders in recycling and waste management business Biffa.
Biffa will receive £75 million for infrastructure investment, while its debt will be reduced by 55 per cent to £520 million from over £1.1 billion.
Investment funds run by Angelo Gordon & Co, Avenue Capital Group, Babson Capital Europe and Sankaty Advisors (owned by Bain Capital) have come together to form the New Shareholders consortium.
The deal is currently a proposal that is backed by Biffa’s senior lenders and the company plans to conclude the process in early 2013.
New Shareholders are fully supportive of the current management team.
Biffa chief executive Ian Wakelin said: “We are delighted to announce this important milestone towards the financial recapitalisation reaching a successful conclusion. The recapitalisation will provide the company with significant new investment, bring long-term financial stability to Biffa, and provide an excellent platform to move forward as we grow and develop the business further.”