RenoNorden Holding AS, a portfolio company of Norvestor, has acquired the household waste collection division of Danish waste management company Renoflex-Gruppen AS. No financial terms were disclosed.
RenoNorden Holding AS (”RenoNorden”) has acquired the household waste collection division (the “Tender Division”) of Renoflex-Gruppen A/S (“Renoflex”), a leading Danish waste management company. Renoflex’ Tender Division is one of the leading collectors and transporters of household refuse and waste in Denmark, servicing 12 out of 98 municipalities mainly in the Zealand- and Capital region.
The Tender Division has grown strongly over the last five years, and had a turnover of DKK 170 million in 2009. RenoNorden will continue to develop the Tender Division along existing lines adding best practise in relevant areas. Moreover, the Tender Division will be the platform for RenoNorden’s future growth in Denmark, which may also include organic or acquisitive growth beyond Zealand.
The Managing Director of the Tender Division, Torben Lindholm, is looking forward to being a part of RenoNorden: “When it was strategically decided to divest the Tender Division, we are very happy to become part of an organisation that has demonstrated a willingness to grow within our core market of municipal waste collection. RenoNorden has a proven strategy and a remarkable focus on quality and details which will be a positive contribution to our business.”
Svein Tore Aurland, CEO of RenoNorden, is very pleased with the transaction. “We are impressed by the strong growth in revenues and profitability carried out by the management and employees of the Tender Division over the last years. They have managed to deliver high quality services to municipalities as well as being price competitive. We believe that the Tender Division’s strong corporate culture and operational model are consistent with RenoNorden’s own core values.”
“We think the Tender Division, with its strong position in Zealand and proven performance, represents an excellent opportunity as a platform for growth in the Danish market. An acquisition of the Tender Division is in line with RenoNorden’s strategy of building a leading Nordic player within municipal waste collection”, says Lars Grinde, Partner in Norvestor Equity and Chairman of the Board of Directors in RenoNorden.