The American Fund Platinum Equity has sealed the pact to become the owner of Urbaser, one of the largest Spanish service companies together with the subsidiaries of Ferrovial and FCC. The purchase agreement with China Tianying (CNTY) reaches an enterprise value of 4.2 billion dollars (3.454 million euros), which includes a debt of about 700 million.
The closing of the operation is scheduled for the third quarter and it is expected that José María López Piñol continue to command as CEO.
José María López Piñol is expected to continue to command Urbaser as CEO
Citi and Santander work as financial advisers to Platinum, which also has the advice of Latham and Watkins in the legal field. Societe Generale, Crédit Agricole and Deutsche Bank They are next to the selling party.
Urbaser, at the time owned by ACS (sold in 2016 to CNTY), has a presence in 25 countrysy serves a total of 70 million inhabitants. Its staff is made up of 50,000 workers. The giant takes care of cleaning more than eight million kilometers of streets; maintains 25 million square meters of green areas; operates 133 waste treatment plants (20 million tons per year), and produces 1.5 GWh of energy from this waste.
Before this mega operation, the Chinese group tried to enter a partner to share the capital. CNTY probed the market in search of 400 to 500 million to reinvest and, predictably, to cut debt.
30 years of experience
With revenues of 2.3 billion in 2020, its main markets are Spain, Chile, Argentina, France and the Nordic region
The Madrid company, founded in 1990, is dedicated to providing urban services and the treatment of municipal and industrial waste. Its main markets are Spain, Chile, Argentina, France and the Nordic region. In the last fiscal year, their income amounted to 2.3 billion euros.
Platinum frames the operation in its growth strategy in Europe, where it already has the wine producer Fantini Group Vini (Ortona, Italy); the cookie maker Biscuit International (Paris); the global maritime contractor Wave Group (Genoa, Italy), and the supplier of seafood Iberconsa (Vigo, Spain).
While Platinum’s management speaks of an opportunity to expand its investments into new ground, China Tianying’s CFO, Fengwei Guo, has highlighted the “strong return” for the shareholders of the Asian firm.
López Piñol referred this morning to the possibility of “accelerate our geographic expansion, maintain a healthy balance and continue to invest in sustainability. “
The new owner of Urbaser is an investment platform founded in 1995 by Tom Gores. The assets that it has under management, with a total of 40 companies, add up to an investment of 25,000 million dollars. Platinum currently invests through Platinum Equity Capital PartnersV, a fund endowed with 10 billion dollars, and Platinum Equity Small Cap Fund, with a mattress of 1,500 million dollars.