AIIM, partners sign agreement to acquire South Africa's EnviroServ Waste Management company
SUEZ and its partners Royal Bafokeng Holdings (RBH) and African Infrastructure Investment Managers (AIIM), signed an agreement for the acquisition of EnviroServ Waste Management company (EnviroServ), to enable SUEZ to reinforce its positioning as an international player in industrial and municipal waste treatment activities and to strengthen its position in the African continent.
Sabrina Soussan, CEO, SUEZ: ''I am delighted with this acquisition which creates a strong footprint for SUEZ in the fast-growing South African market, as well as in neighboring African countries. It highlights our strategic focus on waste, as well as on selective growth in key international markets. I am equally excited at the opportunity to start through EnviroServ a promising partnership with Royal Bafokeng Holdings and African Infrastructure Investment Managers.''
Founded in 1979, EnviroServ collects, treats, and disposes of general and hazardous waste to treatment and disposal facilities across South Africa, Mozambique, and Uganda. With a staff of 2,200 people and a turnover of more than 80 million euros, it is the only player in South Africa with full national coverage and with a complete offering for industries (including on-site, collection, treatment, remediation and related services). It counts on a strong portfolio of customers including a number of multinational firms operating in the petrochemicals, manufacturing, metallurgical and mining sectors.
Albertinah Kekana, CEO, RBH: ''We are pleased to have acquired a stake in a leading waste management and recycling business through EnviroServ and look forward to a fruitful partnership with SUEZ and AIIM. This acquisition is part of our ongoing diversification strategy of investing in sustainable businesses and is a welcome addition to the RBH energy and infrastructure portfolio that will enable us to contribute towards addressing the urbanization and climate change challenges in the Sub-Saharan African region over the medium to long-term.''
EnviroServ is headquartered in the region of Gauteng close to Johannesburg, with regional facilities across South Africa. It is also active in Mozambique and Uganda. The acquisition will be made through a special purpose holding company, with the following shareholdings: SUEZ 51%, RBH 24.5% and AIIM’s IDEAS Managed Fund 24.5%.
Vuyo Ntoi, Joint Managing Director of AIIM: ''The increasing urbanization and industrialization of the African continent is a long-term macro theme that has been a driver of our investment strategy for a number of years now and it is generally accepted that improved waste and water resource management will be required to make cities more livable and sustainable. With more than a quarter of the 100 fastest growing cities in Africa, we believe that our partnership with SUEZ, RBH and EnviroServ will allow us to become more impactful participants and partners to communities and industries in the bringing the best of breed know-how and technology to the management of waste in South Africa, and other parts of the continent.''
Dean Thompson, CEO, EnviroServ Waste Management: ''The delivery of sustainable waste solutions to the African market is a critical need for the continent. EnviroServ Waste Management, a leading and environmentally responsible waste management company, is looking forward to the wealth of knowledge and experience that our new shareholders will bring to the South African and African waste markets. This will further enhance our existing product and service offering and create a robust platform for innovation and growth.''
The transaction is subject to customary conditions precedent including the authorization of the South African antitrust authorities.
www.aiimafrica.com
www.enviroserv.co.za
