Séché strengthens its positions in South Africa with acquisition of Spill Tech
Global waste treatment company Séché Environnement has announced the signature of an agreement for the acquisition of Spill Tech 1, a company in environmental emergency and decontamination services in South Africa.
Spill Tech will complement the environmental services currently offered by the Group to its industrial customers in Southern Africa.
Spill Tech specializes in hazardous spill response and offers high value-added services for industrial cleaning, site decontamination, marine decontamination and polluted soil treatment.
Through its network of 16 sites and 1,300 highly qualified employees, Spill Tech responds at all times, throughout South Africa, to environmental emergency challenges in order to protect people, equipment and the environment from the consequences of industrial accidents or historical pollution.
Thanks to its rapid response capacity (usually in less than an hour), Spill Tech provides solutions that are perfectly adapted to the risks posed by environmental accidents and their consequences, such as the dumping of hazardous materials, on land and at sea. Spill Tech also offers high value-added services for cleaning or decontamination of industrial sites, and soil decontamination.
The Spill Tech business lines therefore will offer seamless industrial, geographical and commercial synergies with the offering of Interwaste, a Séché Environnement subsidiary since 2019 and 2nd largest waste management operator in South Africa, complementing its upstream value chain.
Based on certification procedures meeting the highest international standards, including ISO 9001, ISO 14001, OHSAS 18001, Spill Tech is active among an industrial clientele of major South African and international companies in the oil extraction and petrochemical sectors, including the accreditations of Sasol, Total, BP, Engen and Shell... A company with a strong culture of social responsibility, Spill Tech also fully meets the requirements of Level 1 of the B-BBEE government program aimed at reducing racial inequality in South Africa.
For Maxime Séché, Chief Executive Officer of Séché Environnement: “The acquisition of Spill Tech is a complementary opportunity to strengthen our positions in South Africa, particularly in high value-added environmental services for our core industrial customers. A company with strong, profitable and sustainable growth, with a strong culture of environmental excellence, Spill Tech asserts itself more strongly each year as the leading operator in highly technical businesses with high entry barriers. With the industrial and commercial complementarities that will be implemented between Spill Tech and Interwaste, Séché Environnement will be a major and key player in the environmental and waste management businesses in Southern Africa."
According to Gerald Carmody, founder and CEO of Spill Tech: “Our integration within the Séché Environnement Group will reinforce Spill Tech's prospects at the heart of the very buoyant market for environmental risks in South Africa. While Spill Tech is rapidly expanding among top-tier international customers, Séché Environnement's recognized expertise in this market, its high environmental standards - shared by Spill Tech - as well as a strong presence on the South African market will reinforce Spill Tech's strengths and are a valuable catalyst in its ambitious development strategy."
A fast-growing company (with average revenue growth of +40% per year between 2018 and 2020), it is expected that the addition of Spill Tech shall add approximatively €29million of revenue, €7.9million of EBITDA and €4.6miliion to Séché Environnement Group’s net profit in 2021.
The acquisition will be financed through drawing on the existing banking credit facility.
Subject to fulfilment of the conditions precedent and in particular the approval of the competent regulatory authorities, this acquisition is expected to be finalized in March 2021.