Urbaserthe waste giant that will star in the largest private capital operation in 2024, will receive the first purchase offers in the coming days. Next Monday, November 25, the company owned by the Platinum fund will analyze the first acquisition proposals and of a non-binding nature and that can be between 5,000 and 6,000 million euros. Market sources reduce the list to a maximum of five candidates, including blackstone, KKR, GIP, Macquarie and EQT.
Some of the potential buyers have shown that they have chosen to forge alliances. This is the case of the Australian fund, which, supported by the services of the investment bank Barclays, has partnered with the Canadian pension fund British Columbia Investment Management (BCI) to bid jointly for the Spanish waste management giant, according to ‘Infralogic’.
The other names are sounding strongly, especially Blackstone, which has signed JP Morgan. KKR has done the same with greenhillwhile it is unknown with whom the Swedish fund EQT or GIP is analyzing the operation.
From an advisors’ perspective, major professional services firms have taken positions on both sides of the deal. Citi and Santander act as financial advisors to the seller, while Deloitte has started the process by preparing the necessary materials for the sale. The operation, which can reach 6,000 million euros, has alienated other potential interested parties such as Brookfield, Ardian or I Squared, whose names appeared previously.
Given the size of the transaction, it is estimated that approximately 50% of the value will be financed through banking and non-banking resources, while the rest will be covered with capital from the funds. In terms of timing, the sale is not expected to close until the first quarter of 2025, marking the third change of ownership in the last eight years.
The sale of Urbaser will represent the third change of hands in this period. In 2016, ACS transferred the company to Ying Zhan Investment for an estimated value between 1,164 and 1,399 million euros. Later, in 2021, the Chinese group sold the company to its current owner, Platinum, controlled by Tom Gores, owner of the Detroit Pistons, for 3.5 billion euros.
A sector with interest
The waste management sector has mobilized large companies in the sector in recent years to carry out different asset purchase and sale operations. For example, the French company Veolia acquired a substantial part of Suez’s operations in 2021, consolidating itself as a leader in the water and waste management sector.. This acquisition was approved by the European Commission, subject to certain conditions to ensure competition in the market.
That same year, PreZero, from the Schwarz Group, acquired Ferrovial’s environmental business in Spain and Portugal for 1,133 million euros, significantly expanding its presence in the Iberian Peninsula. And in Spain, FCC incorporated the Canadian pension fund CPP Investments in the capital of its subsidiary FCC Servicios Medio Ambiente. It agreed to sell 24.99% of this division to CPP Investments in 2023 for 965 million euros.
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