Newalta Corp. has sold its Industrial Division, which comprises solid waste and recycling operations, to Revolution Acquisitions LP for $300 million.
Revolution Acquisition, a company formed by Birch Hill Equity Partners of Toronto, bought the division, which serves the Canadian market with more than 35 locations and 950 employees, the Calgary, Alberta-based Newalta said in a news release. The division also features industrial-related onsite services; a lead-acid battery recycling facility in Ville Ste-Catherine, Quebec; an engineered non-hazardous solid waste landfill in Stoney Creek, Ontario; and a used oil collection network and re-refining facility in North Vancouver, British Columbia.
Besides the cash proceeds of $300 million, the transaction includes the assumption of the associated asset retirement obligation.
"We are pleased to add the Industrial Operations of Newalta to the Birch Hill family,” said Pierre Schuurmans, a partner with Birch Hill. “We believe the division has tremendous opportunity to build on its strong capabilities, asset base and market positions across Canada and North America.”
Todd Moser, senior vice president on the Industrial Division will now lead the newly formed entity as president and CEO.
"This transaction advances our strategy of unlocking value as we focus on our core growth divisions, New Markets and Oilfield," said John Barkhouse, Newalta president and CEO. "The Industrial Division is a solid business and has outstanding people but no longer fits with our strategic vision.”
Newalta said proceeds from the sale will be used to pay down debt. The companies expect the transaction to close in the first quarter.