Platinum Equity to Acquire Urbaser, a Global Environmental Services Company from Tianying China for $ 4.2 Billion
Urbaser is one of the world’s leading environmental management companies focused on sustainability and innovation, serving over 70 million people in 25 countries through a network of over 50,000 employees. Currently, he is responsible for cleaning more than 8 million kilometers of streets in different cities around the world and maintaining 25 million square meters of green space. It operates 133 waste treatment facilities with a total of 20 million tonnes processed; produces 1,500 GWh of electrical energy from waste and avoided the emission of nearly 2 million tonnes of CO2 equivalent last year.
Founded in 1990 and based in Madrid, Spain, Urbaser’s core business includes three segments – Urban Services (Waste Collection, Street Cleaning and Water Management), Municipal Waste Treatment and Industrial Waste Treatment – mainly concentrated in Spain, Chile, Argentina, France, and the Nordic region. The company generated approximately $ 2.8 billion (2.3 billion euros) in sales for the 2020 financial year.
“Urbaser is a complex company that is both a vital service provider and an important steward of the environment,” said Tom Gorès, Founder and CEO of Platinum Equity. “He is a leader in a sector that requires both operational excellence and ESG best practices. It’s tailor-made for Platinum’s hands-on approach, and we’re excited about the opportunity. “
In addition to its core services, Urbaser has made substantial investments in R&D with a focus on circular economy solutions such as bioplastics, bioproducts, compost, waste oil recovery from ships and advances in innovative waste collection practices. The company’s commitment to innovation is a competitive and fundamental advantage in providing solutions for the sustainable development of urban services, integrated water management and municipal and industrial waste treatment. (More information is available in the Sustainable development report 2020.)
“The China Tianying team have been excellent stewards of the business and we greatly appreciate their confidence as a transaction partner and their confidence in our ability to build on their success and deliver a transaction that creates value. value for all stakeholders, ”said Platinum Equity Partner. Louis Samson, who oversees the firm’s European operations. “Urbaser will be an important addition to our growing portfolio of operating companies headquartered in Europe. We have a lot of momentum in Spain and in Europe in general, which is the result of the resources we put on the ground there and our deliberate strategy of continuing to invest in the region. We have had great success in Europe and the acquisition of Urbaser represents another exciting step forward. “
Other current investments in European Platinum Equity include: wine producer Fantini Group Vini (Ortona, Italy); manufacturer of private label sweet biscuits Biscuit International (Paris); global maritime entrepreneur De Wave Group (Genoa, Italy); supplier of seafood products Iberconsa (Vigo, Spain); and the European holiday rental group Awaze (London).
“We are delighted to have reached an agreement that provides a strong return to our shareholders while ensuring that Urbaser remains in good hands for the future,” said China Tianying, Chief Financial Officer. Fengwei Guo. “We are confident that Platinum Equity has the resources and expertise to pursue an exciting new phase of growth, expansion and investment.”
At the close, José María López Piñol will continue to lead Urbaser as CEO.
“Platinum’s global operating capabilities, financial resources and commitment to support our business make it the ideal partner,” said Mr. López Piñol. “We will be able to accelerate our geographic expansion, maintain a healthy balance sheet and continue to invest in sustainable development.”
“Urbaser is a highly scalable platform with an attractive value proposition across the spectrum of waste management services,” said the CEO of Platinum Equity. Igor Chacartegui. “The environmental services industry is in a period of growth and consolidation, and we will leverage the scale and technical capabilities of the company to accelerate its expansion both organically and through targeted merger investments. and acquisitions in key geographic areas.
Citi and Santander are acting as investment advisers to Platinum Equity in connection with the acquisition of Urbaser. Latham and Watkins is legal counsel for the firm.
About platinum stocks
Founded in 1995 by Tom Gorès, Platinum Equity is a global investment firm with more than $ 25 billion assets under management and a wallet approximately 40 operating companies serving clients around the world. The company is currently investing Platinum Equity Capital Partners V, a 10 billion dollars global buyout fund, and Platinum Small Cap Equity Fund, a $ 1.5 billion buyout fund focused on investment opportunities in the lower middle market. Platinum Equity specializes in mergers, acquisitions and transactions – a branding strategy she calls M&A & O® – acquire and operate companies in a wide range of business markets including manufacturing, distribution, transportation and logistics, equipment rental, metals related services, media and entertainment, technology, telecommunications and other industries. Over the past 25 years, Platinum Equity has made over 300 acquisitions.
Dan Whelan, Platinum Action
SOURCE Platinum Action