SUEZ announced today it has entered into an exclusivity agreement with PreZero, the environmental division of Schwarz Group, regarding the sale of SUEZ’s Recycling & Recovery operations in Sweden for SEK 3,700m (Enterprise Value)1 i.e. c. EUR 357m1. The agreement enables a solid future for the business and its employees within PreZero, a fast-growing division of the largest European retailer and a pioneer in recyclable waste management.
This will be the second transaction between SUEZ and PreZero announced in a week: the two parties had recently entered into exclusive negotiations for the sale of SUEZ’s Recycling & Recovery assets in four continental Europe countries to PreZero and had announced entering into a memorandum of understanding (MoU) to explore possibilities to develop strategic partnerships promoting the development of circular economy.
SUEZ benefits from a leading position in Sweden, with a presence throughout the Recycling and Recovery value chain, from collection for Municipalities and Industrial & Commercial clients, to sorting and treatment. The business to be transferred to PreZero operates a network of c. 50 sites in the country and employs close to 1,100 people. It generated c. SEK 2,661m in sales (i.e. c. EUR 250m) and c. SEK 358m1 (i.e. c. EUR 34m1) in EBITDA in 2019.
This new announcement demonstrates once again SUEZ’s commitment to successfully deliver on its asset rotation plan deployed in the scope of SUEZ 2030 strategy. The contemplated transaction closes the first wave of disposals ahead of schedule, for an aggregated amount of c.€2.3bn2 to date.
Commenting on the transaction, Bertrand Camus, CEO of SUEZ, said: “This announcement is another important step in the delivery of our asset rotation plan. I am very pleased that our Recycling & Recovery Swedish activities and teams will join PreZero with whom SUEZ will, as announced last week, develop strategic partnerships together to accelerate the development of circular economy.”
The transaction is expected to be completed by end 2020, subject to regulatory approval and customary closing conditions.
J.P. Morgan and Rothschild & Co acted as financial advisors to SUEZ.
1 Excl. IFRS 16 impacts: SEK 300m (c. EUR 28m) on Enterprise Value (debt) and SEK 73m (c. EUR 7m) on EBITDA
2 Incl. IFRS 16
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