7 deals as private equity gets busy in waste management and recycling

Ardian, Nordic Capital and ECP are among firms interested in the waste management and recycling sector.

The transition to a sustainable circular economy has boosted private equity investors’ appetite for the waste management and recycling sector. In the first half of 2023, there was an increase in activity, with a slew of deals registered.

Here are seven waste management and recycling services deals that caught the attention of PE Hub Europe (listed in reverse chronological order):

1. Ardian agrees to acquire 100% of Attero

Ardian, in mid-July, signed an agreement to acquire 100 percent of Attero, an independent European waste management and circular economy platform, from 3i Infrastructure and its co-investors – funds managed by DWS, and 3i Investments.

The deal has an enterprise value of around €1.5 billion, according to sources close to the matter.

2. Palatine makes investment in Roydon recycling

Palatine Private Equity, via its Impact Fund II, invested in Roydon Recycling, a waste management and recycling services company, in mid-June.

Roydon is headquartered in Swinton, near Manchester, in the UK.

3. Nordic Capital-backed Sortera bags GBN Services

Sortera, a portfolio company of Nordic Capital, acquired GBN Services, an independent company working within waste management and the recycling of construction waste in central and north London and surrounding areas, in early June.

4. CPP Investments to buy FCC Medio Ambiente for €965m

In early June, Canada Pension Plan Investment Board (CPP Investments), via CPP Investment Board Europe, agreed to acquire a 24.99 percent stake in FCC Medio Ambiente, a European waste management operator.

CPP Investments will pay €965 million for the stake.

5. Cube Infrastructure, Equitix Investment bag majority stake in RiverRidge

Cube Infrastructure Managers and Equitix Investment Management in mid-May jointly completed the acquisition of a majority stake in RiverRidge Holdings, a waste management and energy recovery company in Northern Ireland.

RiverRidge is based in Belfast. The company has around 280 employees and generated £60 million (€68.9 million; $74.45 million) in revenue in 2022.

6. Abris-backed GreenGroup to acquire UAB Zalvaris

GreenGroup, backed by Abris Capital Partners, acquired UAB Zalvaris, an industrial waste management company, in early April.

Zalvaris is based in Kaunas, Lithuania.

Zalvaris’s acquisition is part of GreenGroup’s new investment plan, totalling up to €200 million, focused on consolidating its market position in Central Europe via capex investments and bolt-on acquisitions, according to a release.

7. ECP bags recycling firm Biffa in £2.1bn deal

Energy Capital Partners completed the acquisition of Biffa, a UK waste management firm, in a £2.1 billion ($2.6 billion; €2.4 billion) take-private deal at the end of January.

Biffa, headquartered in Buckinghamshire, assists the waste management process from recycling, treatment and energy generation to collection, disposal, and surplus redistribution. The firm offers waste services to 100,000 UK business customers and two million households.

PE Hub Europe expects to see more deals in the waste management and recycling sector in the coming months.