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Prezero buys Ferrovial's waste activities in Spain and Portugal

Prezero-branded waste collection lorry
Prezero will take over 16,000 Ferrovial employees
working at 140 sites in Spain and Portugal
27.07.2021 − 

Prezero continues to expand through acquisition. The waste management subsidiary of Germany's Schwarz Group has reached an agreement with Ferrovial to purchase its environmental services operations in Spain and Portugal. The transaction covers waste collection, processing and recycling, and other enviromental services, the two companies announced today. With the acquisition, Prezero is entering the waste management markets in Spain and Portugal for the first time.

According to Ferrovial, the purchase price agreed stands at €1.133bn including equity and debt. The Spanish group's environmental services business reported revenues of €1.018bn last year and earnings before interest, tax, depreciation and amortisation (Ebitda) of €130m. The division had an order backlog of almost €2.2bn at the end of 2020, according to Ferrovial. The division employs a staff of 16,000 at 140 sites in Spain and Portugal, where it processes 5.6 million tonnes of waste annually. Ferrovial's environmental services business is also active in street cleaning, source-separated waste collections and green space maintenance in more than 600 municipalities throughout Spain, serving more than 15 million residents.

The Schwarz Group had announced that the recent acquisition of Suez's waste management activities in five European countries would push Prezero's turnover to around €2bn a year. The purchases in Spain and Portugal announced today will bring the waste management company's annual turnover to around €3bn. This will make Prezero one of the ten largest environmental service companies in the world.

“The planned acquisition is the next step in Prezero’s expansion, with which we intend to further expand our activities in Southern Europe", said Prezero CEO Thomas Kyriakis. Ferrovial was "excellently established" in the field of environmental management and ideally complemented Prezero’s portfolio. "In the process, we anticipate valuable synergies and an additional starting point for the further development of the circular economy in Europe," Mr Kyriakis explained.

Prezero is currently active in seven European countries in addition to its home market of Germany. With the takeover of Ferrovial's activities, the company will also enter the market on the Iberian Peninsula. "The waste management and recycling market in Spain and Portugal is currently in the midst of a transformation," said Gerald Weiss, COO of Prezero International. "Together with the Ferrovial employees, we want to give new momentum to these markets and make an important joint contribution to environmental and climate protection," he said.

The transaction remains subject to customary closing conditions and obtaining clearance from the European authorities as well as to approval by employee representatives. The completion of the sale is expected before the end of the year.

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