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Future Biogas pays 104 million pounds for full ownership of six plants

Future Biogas acquired the remaining 49 per cent of six UK biogas plants from Foresight Environmental Infrastructure for 104 million pounds, taking full ownership. It bought the initial 51 per cent in August 2024. Management expects faster investment and operational improvements. Initial funding combines a 3i Infrastructure equity commitment and existing cash, ahead of a planned refinancing.

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A feedstock hopper connects to a green-roofed biogas digester and gas-conditioning equipment beside hedged farmland.

Remaining 49 per cent changes hands

Future Biogas acquired the remaining 49 per cent of six UK biogas facilities from Foresight Environmental Infrastructure for 104 million pounds. It now owns the plants outright. The company bought its initial 51 per cent interest in the same portfolio in August 2024.[1], [2]

The anaerobic digestion facilities supply gas to the grid. Future Biogas reported approximately 21 per cent growth in their earnings before interest, tax, depreciation and amortisation since taking majority ownership. It said the purchase price matched 3i Infrastructure’s September 2026 valuation expectations.[1]

Full ownership is intended to speed investment

Chief executive Philipp Lukas said Future Biogas had developed and operated the facilities for many years. Management identified opportunities to expand capacity and optimise production. It expects full ownership to accelerate investment in those improvements and simplify future management decisions and a possible exit.[1]

Equity funding precedes planned refinancing

Initial financing combines a 3i Infrastructure equity commitment with existing Future Biogas cash. A refinancing of the company’s capital structure is planned afterwards. 3i expects most of its equity contribution for this transaction to return before its financial year ends in March 2027; that expected return is still ahead.[1]

References

  1. News sourceRNSFuture Biogas buys remaining stake in six plants for 104 million pounds↩1↩2↩3↩4
  2. News sourceBioenergy BusinessFuture Biogas acquires remaining 49 per cent of six plants↩
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