Milton Keynes, UK — The board of Shanks has received all necessary approvals from the relevant competition authorities and shareholder approvals in the Netherlands in relation to the proposed merger with Van Gansewinkel Groep. It is expected that the process for completion and the launch of the Combined Group with a new brand will take around two weeks. Completion is subject to, among other things, approval of a prospectus by the FCA.
Peter Dilnot, Group Chief Executive of Shanks, commented: “We are delighted to have cleared the final regulatory hurdle so that we can complete the transformational merger of Shanks and Van Gansewinkel Groep. This strategic deal will bring two strong companies together to create a new international waste-to-product leader at the heart of the emerging circular economy. The Combined Group will operate across nine countries with unique capabilities and the scale, capability and expertise to grow profitably over the longer-term.“
Shank expects to deliver €40m of cost synergies while positioning the new combined business for sustainable long-term growth. On completion the company will be launching a fresh new brand that captures its heritage and reflects its future vision.
As previously outlined, the Shanks Board believes that the Combined Group can be expected to achieve annual risk weighted pre-tax cost synergies of approximately €40m in the third full year following Completion. Given the ongoing turnaround of Van Gansewinkel Groep, as shown in its performance for the year ended 31 December 2016, and the expected cost synergies, the board of Shanks expects the merger to be significantly earnings enhancing in the second full financial year following completion.
The merger with Van Gansewinkel Groep is wholly aligned with Shanks’ strategy to be a leading international waste-to-product company. According to the company, the combined entity will be well positioned to meet the needs of the emerging circular economy and will have the scale, capability and expertise to deliver long term sustainable growth and attractive returns. The new business will be able to offer its customers an extensive range of recycling technologies and services.
Source: Shanks Group plc