Waste tire recycler Enviro raises €27m through share issue

Stockholm – Scandinavian Enviro Systems has raised SEK300 million (€27 million) through a directed share issue to support its expansion plans across Europe.

In a statement 5 May, the end-of-life tire (ELT) recycler said it sold 150,000 shares at a subscription price of SEK 2.00 per share.

The “heavily oversubscribed” share issue now sees Enviro having new Swedish and international institutional investors.

These include Swedish investment management firm Cicero Fonder, asset manager Coeli Circulus, Handelsbanken Fonder bank, insurance company Skandia and asset management firm Ohman Fonder.

The funds will provide “financial flexibility” for the tire recycler, allowing it to accelerate previously announced pan-European expansion with joint venture partners.

In March, Enviro and private equity firm Antin Infrastructure Partners joined forces to create what they describe as “the world’s first large-scale tire recycling group”.

Using Enviro’s tire pyrolysis technology and supported by Michelin off-take agreements, the 'joint venture' will initially be financed by Antin, which is focused on infrastructure investment.

At the initial stage, Enviro will have no ownership in the venture, but has an option to acquire a holding of up to 30%.

“Enviro has the ambition to own 30% of shares in the JV,” said the recycler in its latest statement.

Company leaders “deemed it crucial” that Enviro secures its financing in the short and medium term to enable “long-term value creation through its ownership in the JV,” it added.

The 'JV' aims to establish plants across Europe, with a total capacity to process 1 million tonnes of end-of-life tires (ELTs) by 2030, Enviro said in a 29 March statement.