Van Gansewinkel reaches agreement with lenders for a recapitalisation

Source: Van Gansewinkel Group

Eindhoven, The Netherlands — Van Gansewinkel has reached an agreement with its shareholders and lenders on a new and sustainable capital structure. This will create a stable platform for the company’s future development, evidenced by a 60 percent reduction in debt, from approximately € 809 million to € 320 million. With this, Van Gansewinkel realises an important prerequisite for the realisation of its business plan and investments for the coming five years.

The restructuring is being achieved through a debt for equity swap resulting in significantly reduced debt and strengthening the company’s equity. The company’s current shareholders will transfer their shares to the senior lenders at completion.

Van Gansewinkel CEO Marc Zwaaneveld: „I am very pleased with the outcome of this process and the speed with which all parties have worked to achieve it. This clearly demonstrates confidence in our plans for the future. The recapitalisation provides our company with a solid foundation for its ambitions and plans, and, with the implementation of a new, right-sized capital structure, enables us to make the investments required to ensure it has a strong future. I am pleased that all parties involved acted responsibly and professionally, reflecting Van Gansewinkel’s heritage, qualities and capabilities.“

The co-ordinating committee of senior lenders: „We recognise the strength of Van Gansewinkel and its leading position in the waste services and recycling sector and are confident the recapitalisation will provide the basis for the successful delivery of the business plan. As lenders and new shareholders, we continue to be fully supportive to the management and its strategy.“

Turnover declined

In 2014 the turnover of € 1,002 billion in 2013 declined to € 962 million. The EBITDAE amounted to € 99 million (2013: € 124 million). This decrease is mainly caused by fierce price pressure on both sides of our value chain, both on the collection side as well as on the raw materials side. In a shrinking and competitive market, our market share remained stable.

The net result is projected at a loss of € 549 million (2013: € 8 million). This result includes an impairment on intangible fixed assets (predominantly goodwill) of € 488 million. This goodwill mainly dates from the acquisition (in 2007) by its current shareholders. The impairment is a reflection of the difficult market situation in which Van Gansewinkel operates.

2015 – a period of transition

2015 is an important period of transition for the company, during which it will consolidate its position as a leading participant in the waste services and recycling sectors. In order to ensure it can benefit from a recovery in its core markets, as evidenced initially by price stabilisation, the company is investing in its core assets. Notable investments in 2015 include a new sorting line for industrial waste in Turnhout, the transformation of the Dintelmond facility into a leading glass recycling centre, the addition of 60 environmentally friendly Euro 6 trucks to its collection fleet and a new modern sorting line in Amsterdam. The investment programme, allied to the capital restructuring, will ensure Van Gansewinkel is well positioned to benefit from a market recovery in the coming years.

CEO Marc Zwaaneveld: “The new capital structure provides us with an excellent opportunity to further invest in and develop our company, to ensure it maintains its position as a leader in sustainability and as a raw material supplier in a profitable circular economy.”

Source: Van Gansewinkel Group