Acquisition of Madrid-Based Integrated Waste Management Company Adds to Global Buyout Firm’s Momentum in Europe
LOS ANGELES and MADRID (October 21, 2021) – Platinum Equity today announced that it has completed the acquisition of Urbaser, one of the world’s largest providers of environmental services, from China Tianying Inc. for an enterprise value of approximately $4.2 billion (€3.5 billion).
Urbaser is a leading global environmental management company oriented towards sustainability and innovation, serving more than 70 million people in 25 countries through a network of more than 50,000 employees. Currently, it 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 areas. It operates 133 waste treatment facilities with a total of 20 million tons treated; produces 1,500 GWh of electrical energy from waste and in the last year has avoided the emission of almost 2 million tons of CO2 equivalent.
“Urbaser is a world leader in environmental management that is developing innovative solutions that improve the quality of life for people in the communities it serves,” said Platinum Equity Partner Louis Samson, who oversees the firm’s European operations. “The company is also another important addition to Platinum’s growing portfolio of operating companies headquartered in Europe and a direct reflection of our commitment to investing in the region. We have had a lot of success delivering divestiture solutions to sellers in Europe and creating value across a wide range of industries. Urbaser is another exciting step forward.”
Other current European Platinum Equity investments include: wine producer Fantini Group Vini (Ortona, Italy); private label sweet biscuits manufacturer Biscuit International (Paris); global marine contractor De Wave Group (Genoa, Italy); seafood provider Iberconsa (Vigo, Spain); and European vacation rentals group Awaze (London).
Founded in 1990 and headquartered in Madrid, Spain, Urbaser’s core business comprises three segments – Urban Services (waste collection, street cleaning and water management), Municipal Waste Treatment, and Industrial Waste Treatment – concentrated primarily in Spain, Chile, Argentina, France, and the Nordic region. The company generated approximately $2.8 billion (€2.3 billion) in revenue for fiscal year 2020.
“Urbaser is an outstanding business with strong customer relationships, great technical know-how, exceptional contracts and assets, and an ESG profile aligned with the increasing demand for sustainable solutions all over the world,” said Platinum Equity Managing Director Igor Chacartegui. “The company is a global leader in many value-added waste treatment technologies such as waste-to-energy, anaerobic digestion, composting and regeneration facilities. We are excited about the opportunity to continue investing in those vital solutions and expanding their impact.”
In addition to its core services, Urbaser has made substantial investments in R&D with a focus on circular economy solutions like bioplastics, bioproducts, compost, waste oil from vessels recovery, and advancements in innovative waste collection practices. The company’s commitment to innovation is a competitive advantage and fundamental to providing solutions for the sustainable development of urban services, integrated water management, and treatment of municipal and industrial waste. (More information is available in the company’s 2020 Sustainability Report.)
José María López Piñol is continuing to lead Urbaser as Chief Executive Officer.
“Platinum is the perfect partner to help accelerate our growth and support our efforts to create new sustainability solutions that can help our customers tackle the complex environmental challenges they face,” said Mr. López Piñol. “Their financial and operational resources will be a tremendously beneficial in our efforts to achieve Urbaser’s long-term strategic goals.”
Citi and Santander are serving as investment advisors to Platinum Equity on the acquisition of Urbaser. Latham and Watkins is serving as the firm’s legal counsel.
Additional insight into the Urbaser acquisition is available here: Managing Director Igor Chacartegui talks about the importance of trust, relationships and ESG in Platinum’s latest European buyout.
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with more than $25 billion of assets under management and a portfolio of approximately 50 operating companies that serve customers around the world. The firm is currently investing from Platinum Equity Capital Partners V, a $10 billion global buyout fund, and Platinum Equity Small Cap Fund, a $1.5 billion buyout fund focused on investment opportunities in the lower middle market. Platinum Equity specializes in mergers, acquisitions and operations – a trademarked strategy it calls M&A&O® – acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 25 years Platinum Equity has completed more than 300 acquisitions.