UK waste management company Biffa has received a £520m (€655m) cash offer from a consortium led by recycling group Chinook Urban Mining, Clearbrook Capital and JPMorgan.
Biffa was acquired by Montagu Private Equity and Global Infrastructure Partners for £1.2bn in 2008, but has struggled as the British economy has deteriorated and is now lumbered with a £1bn debt burden.
If the offer is accepted, it could mean a change of direction for High Wycombe-based Biffa from waste disposal to energy conversion. Waste volumes have declined owing to reduced consumer spending and increased taxes on landfill. Biffa expanded its recycling business with the acquisition of Greenstar in 2010.
Banks looking to finance the deal are thought to include HSBC, GE Capital, Dexia and Prudential M&G, the Financial Times reported.
In the year to March, Biffa reported Ebitda of £150m on revenues of £850m.