Enviri Corporation Sells Reed Minerals for $45 Million
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Enviri Corporation Announces Sale of Reed Minerals
Enviri Corporation (NYSE: NVRI) has announced that it has sold its Reed Minerals business to Speyside Equity for $45 million in cash, subject to post-closing adjustments. The strategic decision to divest this segment is aimed at improving Enviri's financial health and supporting its ongoing transformation strategy.
Financial Implications of the Sale
With the completion of this transaction, Enviri expects to utilize the net cash proceeds to reduce existing debt and further enhance its balance sheet. This sale marks a significant achievement for the Company, as it has now surpassed its asset sale target for the year, reaching over $50 million in proceeds.
Background on Speyside Equity
Speyside Equity is recognized as a global private equity firm managing approximately $1.6 billion. The firm specializes in investing in industrial and manufacturing sectors, making it a suitable partner for Reed Minerals given its past successes in related markets.
Statements from Leadership
Nick Grasberger, Chairman and CEO of Enviri, expressed, "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." He further emphasized how this sale will enable Enviri to concentrate on specific growth areas with improved financial flexibility. Grasberger acknowledged the contributions of the Reed Minerals team, expressing confidence that under Speyside's ownership, the business will thrive with enhanced innovation.
Speyside’s Vision for Reed Minerals
Erik Wiklendt, Managing Director at Speyside Equity, conveyed excitement about collaborating with the Enviri and Reed Minerals teams. He stated, "We look forward to building on this great company, leveraging Speyside’s operational and financial resources alongside its focus on innovation to fortify Reed Minerals’ future success." This collaboration is anticipated to capitalize on synergies that will further propel the growth trajectory of Reed Minerals.
The Role of Advisors in the Transaction
Fifth Third Securities provided financial advisory services to Enviri throughout the transaction, while Squire Patton Boggs (US) LLP acted as the Company’s legal advisor. Their expertise was crucial in successfully navigating the complexities of this divestiture.
About Enviri Corporation
Enviri is a leading provider of environmental services and innovative solutions, trusted for transforming waste into resources. The company addresses complex environmental challenges faced by its diverse clientele while helping them achieve sustainability goals. Enviri operates in over 30 countries, with more than 150 locations globally.
About Speyside Equity
Speyside Equity focuses on making control investments in middle-market industrial businesses, particularly those with proven profitability. The firm prioritizes transactions that involve complexities, such as carve-outs from large corporations and industry consolidations. The experienced investment team at Speyside is dedicated to operational excellence and performance enhancement across their portfolio companies.
Frequently Asked Questions
What is the significance of the sale of Reed Minerals?
The sale marks a critical move for Enviri Corporation as it aims to enhance its financial position and focus on core segments of its business.
How much did Enviri Corporation sell Reed Minerals for?
Enviri sold the Reed Minerals business for $45 million in cash, subject to post-closing adjustments.
What will Enviri do with the proceeds from the sale?
Enviri plans to use the net cash proceeds primarily to reduce its debt and strengthen its overall balance sheet.
Who are the key stakeholders involved in this transaction?
Key stakeholders include Enviri's Chairman and CEO Nick Grasberger, Speyside Equity's Managing Director Erik Wiklendt, and their respective financial and legal advisors.
What is Enviri Corporation known for?
Enviri Corporation is known for providing a wide range of environmental services and innovative solutions aimed at addressing complex waste management challenges for various industries.
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