Prezero to acquire Suez's waste business in Germany, the Netherlands, Luxembourg and Poland

Prezero plans to acquire Suez waste operations
in four countries in continental Europe.
16.09.2020 − 

The waste management company Prezero, a sister company to Lidl within the Schwarz Group, plans to take over Suez's waste management operations in in Germany, the Netherlands, Luxembourg and Poland. In separate statements issued on Wednesday morning, the two companies said they had agreed to enter into exclusive sales negotiations.

Suez put the enterprise value of the contemplated transaction at €1.100bn. The acquisition is to be completed in the fist half of 2021, subject to the approval of regulatory authorities, customary closing conditions and the consultation of employee representative bodies.

Plastic recycling, hazardous waste and Belland Vision excluded from sale

Prezero will not be acquiring Suez's plastic recycling and hazardous waste treatment activities in continental Europe, Suez said in its announcement of the deal. Also excluded from the transaction is the Belland Vision packaging compliance system. EUWID has learnt that Carsten Dülfer, head of Suez in Germany, resigned from the management of Belland Vision yesterday. Diana Uschkoreit is now the sole managing director of the company.

In addition, both companies said that they had signed a memorandum of understanding (MoU) and intended to explore the possibilities for strategic partnerships. The two companies would bring "complementary skills" to such partnerships: Suez, its size and experience in the international waste and water management markets, and the Schwarz Group, its position as the largest European retailer, and its experience as a pioneer in recyclables through its Prezero environmental division. Together, the concerns aim to promote innovative waste management solutions and to accelerate the development of the circular economy in Europe, according to Suez and Prezero.

Divestment a part of the "Suez 2030" strategic plan

Suez CEO Bertrand Camus said the project marked "a major step in the achievement of our SUEZ 2030 strategic plan, presented last October, which plans to concentrate our forces in France and in Europe, on the activities and geographies where we can deploy our most promising innovations to become the leader in environmental services."

"The transaction is part of Suez's asset rotation programme and values the quality of our business portfolio," said Mr Camus. The Suez CEO added that he was excited to accelerate the circular economy together with the Schwarz Group as part of the MoU that was signed on Wednesday.

Acquisition to be a foundation of further growth for Prezero

Thomas Kyriakis of Prezero's executive board said that following the contemplated acquisition of Suez's Recycling & Recovery businesses in the Netherlands, Luxembourg, Germany and Poland, "municipal customers and our partners in commercial and industry likewise will benefit from us driving competition."

Gerald Weiss, Managing Director of Prezero International said that by enhancing its service portfolio and expanding its location coverage, Prezero would create sustainable added value for its customers. After completion of the transaction, Prezero would have a total of approximately 10,300 employees in Germany, Poland, the Netherlands, Belgium, Luxembourg, Austria, Italy and the US.

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