Materiality of ESG factors is evaluated on a case-by-case basis, and TowerBrook may walk away from a deal based on ESG-related issues at any point prior to signing.
Specific examples of the results of TowerBrook's engagement on ESG issues within the past few years include:
AustroCel Hallein: Following TowerBrook’s acquisition, a project was approved to construct a bioethanol plant that would enable the company to produce bioethanol by recycling a side product called brown liquor that is generated as part of the mill’s core manufacturing process. This investment is expected to significantly increase the earnings coming from green energy production, and to overall improve the financial profile of AustroCel Hallein.
AIM Aviation: The construction of the new factory for Cabin Interiors in Bournemouth was delayed for 18 months to allow the clearance of rare snakes from the site. The presence of the snakes was uncovered by a survey undertaken by the company, which then declared the situation to the local authorities and cooperated fully with the wildlife consultants. The snakes were eventually removed and the factory is now under construction.
Kaporal: The company undertakes annual inspections of supplier factories to ensure that the requirements of its vendor manual and quality standards are being observed. In the last year, TowerBrook personnel accompanied the company teams to China and India in order to verify that the procedures laid out in the manual are being observed.
KeHe: KeHe became the first food distributor to earn a B Corp certification, and responsible ownership is an integral part of how the company works. TowerBrook partnered with KeHe as they share our commitment to values such as diversity, inclusion, service, transparency, and sustainability.
Metallo: Following TowerBrook's acquisition, a €35m capex project was approved to construct a new zinc fumer on the company's site in Belgium. The project was approved to further the company's strategy of being the industry's best in class with regard to observance of environmental standards. The zinc fumer effectively recycles the waste of other processes, thus enabling the company to become a zero-waste green recycler. Every year, more than 350,000 tons of raw materials are recycled via Metallo's processes and refined into new metal products for global customers.
TriMedx: TriMedx partners with healthcare providers to reduce the cost of managing and maintaining medical equipment fleets, unlocking substantial value for its customers who can redeploy savings towards patient care. Currently, the majority of TriMedx customers are not-for-profit hospital systems serving the needs of a variety of communities across the US. Through the TriMedx Foundation, the company also supports healthcare in emerging markets by sending used and donated equipment overseas. Since its founding in 2004 the TriMedx Foundation has provided over 7,400 volunteer hours to support communities in need.
FloWorks (formerly Shale-Inland): In the course of the due diligence TowerBrook identified manageable environmental concerns that led to bespoke environmental indemnities being negotiated, which afforded TowerBrook more robust protection than otherwise would have been available under general indemnification terms. Additionally, TowerBrook identified a steel plant with environmental issues pre-acquisition, and insisted that the plant in question be carved out of the transaction before it would proceed.