Case Studies


Macquarie Group’s Acquisition of Wheelabrator from Energy Capital Partners

TRANSACTION OVERVIEW

  • On February 12th, 2019, Macquarie Infrastructure Partners (“MIP”), operating within the Macquarie Infrastructure and Real Assets (“MIRA”) division of Macquarie Group, and Wheelabrator Technologies Inc. (“Wheelabrator”) announced that MIP, acting through one of its managed funds, has completed the purchase of Wheelabrator from funds managed by Energy Capital Partners (“ECP”)

WHEELABRATOR OVERVIEW

  • Wheelabrator is the second largest U.S. waste-to-energy business, and is an industry leader in the conversion of everyday residential and business waste into clean energy
  • The Company has a platform of 25 strategically located assets in the U.S. and the U.K, including 19 waste-to-energy facilities (three under construction), two waste fuel facilities and four ash monofills
  • Wheelabrator also recovers metals for recycling at two advanced metals recovery systems and is in the process of developing a central upgrade facility
  • Wheelabrator has an annual waste processing capacity of over 8 million tons, and a total combined electric generating capacity of 732 megawatts – enough energy to power 671,100 homes

MACQUARIE INFRASTRUCTURE AND REAL ASSETS OVERVIEW

  • MIRA is a business within the Macquarie Asset Management division of Macquarie Group and a global alternative asset manager focused on real estate, infrastructure, agriculture and energy assets
  • MIRA has significant expertise over the entire investment lifecycle, with capabilities in investment sourcing, investment management, investment realization and investor relations
  • MIRA has approximately US$129 billion of total assets under management as of March 31, 2019

GREENTECH’S ROLE

  • Greentech acted as financial advisor to Macquarie Infrastructure and Real Assets
  • Greentech leveraged a collaboration of its energy and environmental services sector and transaction knowledge to assist MIRA in deriving its acquisition thesis
  • Greentech coordinated due diligence advisors across the U.S. and U.K., including accounting, tax, engineering, environmental and legal advisors and constructed facility-by-facility analyses, assessing contracts, financials, KPIs and growth strategies

WHAT THE TRANSACTION MEANS
FOR THE SECTOR

  • The Northeast U.S. waste market continues to see increased asset interest and high levels of market consolidation driven by contracting landfill capacity
  • Wheelabrator had announced intentions to IPO the platform, potentially creating another public waste-to-energy platform in addition Covanta, but ultimately sold to MIRA, who is seeking to leverage its prior and current environmental services expertise in North America (e.g. GFL Environmental, WCA Waste and Waste Industries) to drive investor returns
  • The process demonstrated strong interest in U.S. waste-to-energy assets amidst increasing regulatory demands and some community opposition, as well as a robust value proposition for development assets in key geographies, including the U.K.

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