Dalmore, Fiera among quartet in $2bn UK waste deal

Swiss Life and Semperian PPP have also joined the ticket to buy Cory Riverside, planning a new solar, waste, storage and heating plant in London.

A quartet of investors comprising Dalmore Capital, Fiera Infrastructure, Semperian PPP Investment Partners and Swiss Life Asset Managers have bought UK waste firm Cory Riverside in a deal believed to be worth a little over £1.5 billion ($2 billion; €1.7 billion), Infrastructure Investor understands.

The group have bought the company from distressed debt-focused investor SVPGlobal, EQT Credit Commerzbank and other shareholders. SVPGlobal first invested in the company in 2014. The following year it led its financial restructuring with the support of other shareholders. They since completed a £520 million refinancing last March with funding from both banks and institutional lenders.

The owners have also sold Cory’s street collection and landfill gas businesses in recent years while EBITDA is thought to have risen by £12 million in the last five years to £79 million. Cory’s main business is the 66MW Riverside Energy Recovery facility, the largest operating energy from waste plant in the UK.

The company announced plans last year to build the Riverside Energy Park in London, a project planned to contain solar power, anaerobic digestion, battery storage and combined heat and power with a total capacity of 96MW, in addition to a 30,000-metre data centre. Today, the business processes around 750,000 tonnes of London’s non-recyclable waste and generates 528GWh of renewable energy, powering the equivalent of 160,000 homes.

The deal is UK-based Dalmore’s third from its Dalmore Capital 3 fund, following moves for Anglian Water and the M25 motorway last year. The fund has a target of £500 million but is thought to have exceeded that ahead of a £750 million hard-cap.

Cory represents the seventh investment for Swiss Life’s Global Infrastructure Opportunities II vehicle. The fund is expected to close on around €1.2 billion in the coming months.