Meath-headquartered Harp provides waste management control systems and bio-digesters that convert organic waste into a useful agricultural product.
US company Renovare Environmental has entered an agreement to acquire both Harp Renewables and its affiliate company Harp Electric Engineering for $20m.
The deal comprises $15m in common stock and $5m cash and has been unanimously approved by the boards of both companies.
“The combination of Harp and Renovare will dramatically increase our growth prospects by expanding our complementary product offerings and positioning Renovare as the world leader in providing renewable and sustainable solutions for the treatment of organic waste,” said Renovare CEO Tony Fuller.
Formerly BioHiTech Global, Renovare provides technology to support waste management such as real-time data analytics to reduce food waste.
Under the acquisition agreement, Harp will nominate two representatives to Renovare’s board.
“I look forward to my new role as a Renovare shareholder and member of the board of directors,” said Harp founder and president Shane Finnegan. “This business combination is accretive to both our firms and will create the leading provider of sustainable, renewable, environmentally friendly waste management solutions and services.”
Finnegan founded Harp Electrical Engineering in 2002 and the company currently provides the design and installation of controls systems to clients across Ireland, the UK, Australia and the US. This includes installations in factory, industrial and commercial settings as well as recycling and waste management plants.
Harp Renewables is a more recent venture founded by Finnegan in 2014, combining electrical engineering expertise with proprietary renewable biotechnology. The company manufactures and sells a range of bio-digesters that, through thermophilic aerobic digestion, convert organic waste into a dry, safe, nutrient-rich soil product that can be used in agriculture.
In 2018, Harp Renewables was a double award winner at the National Ploughing Championships Innovation Awards.
Both companies are headquartered in Kentstown, Co Meath.
“As part of a broader effort to significantly reduce the emission of CO2 and greenhouse gases, companies and governments around the world are increasingly focused on developing policies, incentives and practices that encourage the reduction or elimination of organic material disposal,” said Fuller.
“With the combined portfolio of solutions and an established footprint in both Europe and North America, the [combined company] will be in a strong position to capitalise on these trends and cross-sell our complementary products to an expanded variety of sectors, including food manufacturers, supermarkets, hospitals, and educational institutions.”
The deal is expected to close in the first half of 2022.
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