Enviri Corporation announces sale of Reed Minerals
Enviri (NYSE: NVRI) has announced the sale of its Reed Minerals business to Speyside Equity for $45 million in cash, subject to post-closing adjustments. This transaction surpasses Enviri's 2024 asset sale goal of $50 to $75 million in proceeds. The company plans to use the net cash proceeds to reduce debt and strengthen its balance sheet.
Speyside Equity, a global private equity firm with $1.6 billion under management, has experience in markets relevant to Reed Minerals. Enviri's CEO, Nick Grasberger, stated that this divestiture is part of the company's strategy to transform its business portfolio, focus on core markets, and reduce financial leverage. The sale is expected to provide Enviri with increased financial flexibility to focus on specific growth areas.
Enviri (NYSE: NVRI) ha annunciato la vendita della sua attività Reed Minerals a Speyside Equity per 45 milioni di dollari in contanti, soggetto ad aggiustamenti post-chiusura. Questa transazione supera l'obiettivo di vendita di attività di Enviri per il 2024, fissato tra 50 e 75 milioni di dollari in ricavi. L'azienda prevede di utilizzare il ricavato netto per ridurre il debito e rafforzare il proprio bilancio.
Speyside Equity, una società globale di private equity con 1,6 miliardi di dollari sotto gestione, ha esperienza in mercati rilevanti per Reed Minerals. Il CEO di Enviri, Nick Grasberger, ha dichiarato che questa dismissione fa parte della strategia dell'azienda per trasformare il proprio portafoglio aziendale, concentrarsi sui mercati core e ridurre la leva finanziaria. Si prevede che la vendita fornisca a Enviri una maggiore flessibilità finanziaria per concentrarsi su specifiche aree di crescita.
Enviri (NYSE: NVRI) ha anunciado la venta de su negocio Reed Minerals a Speyside Equity por 45 millones de dólares en efectivo, sujeto a ajustes posteriores al cierre. Esta transacción supera el objetivo de Enviri de vender activos para 2024, que era de 50 a 75 millones de dólares en ingresos. La empresa planea utilizar el ingreso neto para reducir su deuda y fortalecer su balance.
Speyside Equity, una firma global de capital privado con 1.6 mil millones de dólares bajo gestión, tiene experiencia en mercados relevantes para Reed Minerals. El CEO de Enviri, Nick Grasberger, declaró que esta desinversión es parte de la estrategia de la empresa para transformar su cartera de negocios, centrarse en mercados clave y reducir el apalancamiento financiero. Se espera que la venta brinde a Enviri mayor flexibilidad financiera para enfocarse en áreas de crecimiento específicas.
엔비리(NYSE: NVRI)는 자사의 리드 미네랄 사업을 스페이스사이드 에퀴티에 4,500만 달러에 현금으로 매각한다고 발표했습니다. 이는 거래 종료 후 조정이 이루어질 예정입니다. 이번 거래는 엔비리의 2024년 자산 매각 목표인 5천만에서 7천5백만 달러를 초과하는 내용입니다. 회사는 순수익을 사용해 부채를 줄이고 재무 상태를 강화할 계획입니다.
스페이스사이드 에퀴티는 16억 달러를 관리하는 글로벌 사모펀드로, 리드 미네랄과 관련된 시장에서 경험을 보유하고 있습니다. 엔비리의 CEO인 닉 그라스버거는 이 매각이 회사의 사업 포트폴리오를 변화시키는 전략의 일환이라고 전하며, 핵심 시장에 집중하고 재무 레버리지를 줄이는 것이 목표라고 밝혔습니다. 이번 판매는 엔비리에게 특정 성장 분야에 집중할 수 있는 재무적 유연성을 제공할 것으로 예상됩니다.
Enviri (NYSE: NVRI) a annoncé la vente de son activité Reed Minerals à Speyside Equity pour 45 millions de dollars en espèces, sous réserve d'ajustements postérieurs à la clôture. Cette transaction dépasse l'objectif de vente d'actifs d'Enviri pour 2024, fixé entre 50 et 75 millions de dollars en recettes. L'entreprise prévoit d'utiliser le produit net pour réduire sa dette et renforcer son bilan.
Speyside Equity, une société mondiale de capital-investissement avec 1,6 milliard de dollars sous gestion, a de l'expérience sur des marchés pertinents pour Reed Minerals. Le PDG d'Enviri, Nick Grasberger, a déclaré que cette cession faisait partie de la stratégie de l'entreprise pour transformer son portefeuille d'activités, se concentrer sur des marchés clés et réduire son effet de levier financier. La vente devrait donner à Enviri une flexibilité financière accrue pour se concentrer sur des domaines de croissance spécifiques.
Enviri (NYSE: NVRI) hat den Verkauf seines Reed Minerals Geschäfts an Speyside Equity für 45 Millionen Dollar in bar angekündigt, vorbehaltlich nachfolgender Anpassungen. Diese Transaktion übersteigt das Verkaufsziel von Enviri für Vermögenswerte 2024 von 50 bis 75 Millionen Dollar an Erträgen. Das Unternehmen plant, den Nettobarerlös zu verwenden, um die Schulden zu reduzieren und die Bilanz zu stärken.
Speyside Equity, eine globale Private-Equity-Firma mit 1,6 Milliarden Dollar unter Verwaltung, hat Erfahrung in den für Reed Minerals relevanten Märkten. Der CEO von Enviri, Nick Grasberger, erklärte, dass diese Desinvestition Teil der Strategie des Unternehmens ist, um seinem Geschäftswportfolio eine neue Richtung zu geben, sich auf Kernmärkte zu konzentrieren und den finanziellen Hebel zu reduzieren. Der Verkauf wird voraussichtlich Enviri eine erhöhte finanzielle Flexibilität bieten, um sich auf bestimmte Wachstumsbereiche zu konzentrieren.
- Sale of Reed Minerals business for $45 million in cash
- Surpassed 2024 asset sale goal of $50 to $75 million in proceeds
- Proceeds to be used for debt reduction and balance sheet strengthening
- Increased focus on core markets and specific growth areas
- Enhanced financial flexibility
- Divestiture of a business unit, potentially impacting overall revenue
Insights
The sale of Reed Minerals for
However, investors should consider the long-term implications of divesting a "strong business." While it may improve Enviri's financial position now, it could potentially impact future revenue streams. The sale's effect on Enviri's overall valuation will depend on how effectively they reinvest in their core markets and capitalize on the increased financial flexibility.
This divestment signals Enviri's commitment to portfolio optimization and focus on core markets. The transaction with Speyside Equity, a firm with
The market's reaction will likely depend on how investors perceive Enviri's ability to leverage this increased financial flexibility for growth in its core areas. The company's success in executing its transformation strategy and demonstrating improved financial performance in the coming quarters will be important for investor confidence.
PHILADELPHIA, Aug. 29, 2024 (GLOBE NEWSWIRE) -- Enviri Corporation (NYSE: NVRI) announced today that it has sold its Reed Minerals business to Speyside Equity for
Speyside Equity is a global private equity firm with
“Divesting Reed Minerals is yet another noteworthy transaction for Enviri as we continue to transform our business portfolio to focus on core markets and reduce our financial leverage,” said Enviri Chairman and CEO Nick Grasberger. “As with our other business transactions, the sale of Reed Minerals will further enable Enviri to focus on specific growth areas with increased financial flexibility. I want to recognize and thank our Reed Minerals colleagues for their leadership, diligence, and contributions to this strong business. I am confident that under Speyside’s ownership and its experience in relevant markets, Reed Minerals will benefit from enhanced innovation and growth.” Erik Wiklendt, Managing Director at Speyside Equity, said, “We look forward to working with the Enviri and Reed Minerals management teams and employees to build on this great company. Given Speyside’s demonstrated strengths, and with the addition of Speyside’s market experience, operational and financial resources, and focus on innovation, an ideal foundation for Reed Minerals future success will be created.”
Fifth Third Securities served as financial advisor to Enviri, and Squire Patton Boggs (US) LLP served as the Company’s legal advisor.
Forward-Looking Statements
The nature of the Company's business, together with the number of countries in which it operates, subject it to changing economic, competitive, regulatory and technological conditions, risks and uncertainties. In accordance with the "safe harbor" provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, the Company provides the following cautionary remarks regarding important factors that, among others, could cause future results to differ materially from the results contemplated by forward-looking statements, including the expectations and assumptions expressed or implied herein. Forward-looking statements contained herein could include, among other things, statements about management's confidence in and strategies for performance; expectations for new and existing products, technologies and opportunities; and expectations regarding growth, sales, cash flows, and earnings. Forward-looking statements can be identified by the use of such terms as "may," "could," "expect," "anticipate," "intend," "believe," "likely," "estimate," "outlook," "plan," "contemplate," "project," "target" or other comparable terms.
Factors that could cause actual results to differ, perhaps materially, from those implied by forward-looking statements include, but are not limited to: (1) the Company's ability to successfully enter into new contracts and complete new acquisitions, divestitures, or strategic ventures in the time-frame contemplated or at all, including the Company's ability to divest the Rail business in the future; (2) the Company’s inability to comply with applicable environmental laws and regulations; (3) the Company’s inability to obtain, renew, or maintain compliance with its operating permits or license agreements; (4) various economic, business, and regulatory risks associated with the waste management industry; (5) the seasonal nature of the Company's business; (6) risks caused by customer concentration, the long-term nature of customer contracts, and the competitive nature of the industries in which the Company operates; (7) the outcome of any disputes with customers, contractors and subcontractors; (8) the financial condition of the Company's customers, including the ability of customers (especially those that may be highly leveraged or have inadequate liquidity) to maintain their credit availability; (9) higher than expected claims under the Company’s insurance policies, or losses that are uninsurable or that exceed existing insurance coverage; (10) market and competitive changes, including pricing pressures, market demand and acceptance for new products, services and technologies; changes in currency exchange rates, interest rates, commodity and fuel costs and capital costs; (11) the Company's ability to negotiate, complete, and integrate strategic transactions and joint ventures with strategic partners; (12) the Company’s ability to effectively retain key management and employees, including due to unanticipated changes to demand for the Company’s services, disruptions associated with labor disputes, and increased operating costs associated with union organizations; (13) the Company's inability or failure to protect its intellectual property rights from infringement in one or more of the many countries in which the Company operates; (14) failure to effectively prevent, detect or recover from breaches in the Company's cybersecurity infrastructure; (15) changes in the worldwide business environment in which the Company operates, including changes in general economic and industry conditions and cyclical slowdowns; (16) fluctuations in exchange rates between the U.S. dollar and other currencies in which the Company conducts business; (17) unforeseen business disruptions in one or more of the many countries in which the Company operates due to changes in economic conditions, changes in governmental laws and regulations, including environmental, occupational health and safety, tax and import tariff standards and amounts; political instability, civil disobedience, armed hostilities, public health issues or other calamities; (18) liability for and implementation of environmental remediation matters; (19) product liability and warranty claims associated with the Company’s operations; (20) the Company’s ability to comply with financial covenants and obligations to financial counterparties; (21) the Company’s outstanding indebtedness and exposure to derivative financial instruments that may be impacted by, among other factors, changes in interest rates; (22) tax liabilities and changes in tax laws; (23) changes in the performance of equity and bond markets that could affect, among other things, the valuation of the assets in the Company's pension plans and the accounting for pension assets, liabilities and expenses; (24) risk and uncertainty associated with intangible assets; and the other risk factors listed from time to time in the Company's SEC reports. A further discussion of these, along with other potential risk factors, can be found in Part I, Item 1A, “Risk Factors” of the Company’s most recently filed Annual Report on Form 10-K, as updated by subsequent Quarterly Reports on Form 10-Q, which are filed with the Securities and Exchange Commission. The Company cautions that these factors may not be exhaustive and that many of these factors are beyond the Company's ability to control or predict. Accordingly, forward-looking statements should not be relied upon as a prediction of actual results. The Company undertakes no duty to update forward-looking statements except as may be required by law.
About Enviri
Enviri is transforming the world to green, as a trusted global leader in providing a broad range of environmental services and related innovative solutions. The Company serves a diverse customer base by offering critical recycle and reuse solutions for their waste streams, enabling customers to address their most complex environmental challenges and to achieve their sustainability goals. Enviri is based in Philadelphia, Pennsylvania and operates in more than 150 locations in over 30 countries. Additional information can be found at www.enviri.com.
About Speyside Equity
Speyside Equity makes control investments in middle-market industrial manufacturing businesses with histories of profitability. Targeted deals often possess transactional complexity such as carve-outs of large multinational companies, industry consolidations, family-owned businesses, and other special situations. Target investments typically have revenues of up to
| Investor Contact David Martin +1.267.946.1407 dmartin@enviri.com | Media Contact Maura Pfeiffer +1.267.964.1868 mpfeiffer@enviri.com | ||
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