3i Infrastructure to buy landfill gas business for £185m
On completion of this acquisition, which is expected by the end of November, the company would have invested all of the cash it raised in June.
The company's long-term plans for the business involve continuing with Infinis' focus on maximising gas and electricity yield, driving cost efficiencies, maintaining strong relationships with landfill owners and other stakeholders, and while as gas and electricity output from the current portfolio declines, it would also seek to monetise spare engine and grid connection capacity.
Chairman Richard Laing said the cash generation profile of Infinis, which has 121 operating sites and seven outsourced sites across the UK with power generation of over 300 megawatts, is a "natural fit" for the company and complements its portfolio.
Landfill gas results from the decomposition of organic matter in landfill site and by extracting gas from the sites, Infinis fulfils a role in helping waste management companies meet their environmental compliance obligations.
Infinis uses the collected landfill gas to generate power which abates the global warming impact of the methane emissions but also provides a source of power generation to local communities. ■