Severn Trent buys AD Company Agrivert
UK based Water Company Severn Trent, is currently in the process of buying Agrivert Holdings Ltd and its subsidiaries for an enterprise value of £120 million. This will also include a repayment of some £60 million debt.
The water company already has two operating food waste AD plants to their name in East and West Birmingham. Both were developed by Agrivert, who have been producing renewable energy through anaerobic digestion since 1994 and whose assets will now be incorporated into Severn Trent’s non-regulated Green Power business.
The deal between both companies will help to boost Severn Trent’s 354GWh of annual energy generation to 460GWh. This will also mean that by 2020, the company will have increased its investment in energy and renewables to £300 million.
Chief Executive of Severn Trent, Liv Garfield said on the deal, “Renewable energy is strategically important to Severn Trent and the UK as a whole, as we work towards achieving our decarbonisation targets and delivering attractive shareholder returns.”
The deal is expected to be finalised by the end of 2018.