Limerick-based agri-tech company BHSL Hydro has acquired a majority stake in Glanway Ltd, a municipal waste business based in Belview Port, Co Kilkenny.

Documents filed with the companies office show that BHSL have acquired 67% of the share capital in Glanway and the management team will be staying with the business. The deal is believed to be valued at €5m to €6m.

Glanway has a licence from the Environmental Protection Agency (EPA) to process 130,000t of municipal waste every year, which is typically the organic waste disposed of by households in the brown recycling bin. Glanway now processes almost 10% of the 1.6m tonnes of municipal waste produced in Ireland each year.

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“This is a significant acquisition for BHSL Hydro and gives us a strong position in the processing of municipal waste in Ireland. We have evolved our strategy in recent years to encompass both the development of waste engineering technology and waste processing,” said Denis Brosnan, executive chair at BHSL Hydro.

Extension

The deal further extends BHSL’s positioning within the waste ers such as ABP Food Group, Smurfit Kappa, Irish Water, Kerry Group, Arrabawn, Coca Cola and Heineken.

BHSL, which was established by brothers Declan and Jack O’Connor and is now headed up by executive chair and former Kerry Group CEO Denis Brosnan, also announced it is in the final stages of an €8m equity raise. The company has now raised over €20m in equity since 2016 as it seeks to establish itself further.

The company intends to use the fresh capital injection to finance the acquisition of Glanway as well as meet working capital needs for further expansion into 2019.

Accounts recently filed with the companies office show BHSL had sales of €15.6m in 2017, which includes the Hydro acquisition.

The company made a pre-tax loss of €1.9m, which is an improvement on the €4.1m loss made in 2016.