Severn Trent Plc said on Thursday it would buy organic waste recycler Agrivert Holdings Ltd for 120 million pounds ($156.1 million), as the British water utility aims to expand its renewable energy business.
Agrivert generates renewable energy from food waste and operates food-waste processing plants and waste composting sites in the UK.
“Renewable energy is strategically important to Seven Trent and the UK as a whole as we work towards achieving our decarbonisation targets,” Severn Trent Chief Executive Officer Liv Garfield said in a statement on Thursday.
Severn Trent, an FTSE 100 component, will fund the deal with existing cash and bank facilities, it said. ($1 = 0.7689 pounds)