Parent company Veolia Environnement has secured financial backing to acquire the German waste management operator the Sulo group. This deal will make the companys waste management division Veolia Environmental Services the leader in Europe.
The acquisition was made possible through an agreement between Veolia Environnement, The Blackstone Group and Apax Partners. The acquisition will be carried out by Veolia Environnement and is for the value of EURO1,450 million, including financial debt.
Sulo holds strong market positions in Eastern Europe and the Baltic States, which should aid Veolia Environmental Services growth in these markets once the businesses have merged.
This acquisition strengthens our position [and allows us] to take advantage of the acceleration in the development of public-private partnerships, said Veolia Environnements chairman and chief executive Henri Proglio.
Annual revenue for Sulo was EURO1.3 billion in 2006 and is a specialist in paper and plastics recycling with expertise in sorting and organic recovery.
The deal remains subject to the antitrust authorities approval.