Montagu Private Equity ("Montagu") has today agreed to sell Cory Environmental ("Cory") to a consortium of long term infrastructure investors consisting of ABN AMRO Global Infrastructure Fund (ABN AMRO GIF), Finpro SGPS and Santander Private Equity, on behalf of Santander Infrastructure Funds I and II for £588 million (enterprise value). The transaction is expected to complete by the end of March. 

Cory is one of the UK's leading waste management companies. It operates ten landfill sites across the UK, and has contracts for recycling, street cleaning and waste collection stretching from Lincolnshire to Cornwall. It is best known for operating barges on the River Thames. Around 15% of London's waste is transferred by barge, removing 100,000 lorry movements per year from London's roads.

In 2005, working with Cory's existing management team, Montagu acquired the business from Exel whose main business is logistics and supply chain management. As an independent company, Cory has grown substantially over the last two years. At the time of the acquisition, Cory operated 9 landfill sites. One new site in Kent has since been opened, with a further site in the South West due to become operational this year. Over the last two years Cory has expanded its available landfill capacity by 50%, grown revenues from £130m to over £180m and signed important contracts with Gloucestershire County Council, Walsall MBC, Milton Keynes, Lincoln and Epping Forest. Cory has also substantially advanced the plans for a 585,000 tonnes per annum Energy from Waste facility, planned to be built in Belvedere, Kent.

Cory continues to make significant investments in developing alternative waste disposal facilities, including the recently approved Materials Recycling Facility in Wandsworth. This facility will enable its customers to meet their obligations to divert waste from landfill. 

Cory's experienced and well regarded management team have agreed to remain in place during the next stage of Cory's development.

Cory's Chief Executive, Malcolm Ward, said: "It is very much a case of business as usual. We will strive to retain our industry leading environmental and safety records, provide our current customers with continued excellence of service and continue to seek out new opportunities to grow and develop our business."

Jason Gatenby of Montagu said, "Working with Montagu, the first rate Cory management team has executed a highly successful growth strategy. They have grown the workforce by 20% in two years, increased both revenues and long term capacity by 50%, won important new clients and maintained industry leading operating and environmental standards. Cory has excellent growth prospects and we wish everyone at Cory well for the future." 

Deutsche Bank AG London ("Deutsche Bank") is acting as sole financial adviser to Montagu in relation to the transaction.