Ferrovial has reached an agreement to sell its Environmental Services business in Spain and Portugal to PreZero, part of Schwarz Group, in its ongoing bid to Ferrovial Services.
The transaction, which involves the sale of waste collection, waste treatment and recycling business in Spain and Portugal, represents an enterprise value of just over €1.1bn, including equity and debt, the company said.
Ferrovial expects the sale to deliver a capital gain of some €317m assuming an equity value of €950m at the time of the signing, which could slightly vary between signing and closing.
Final completion of the deal is subject to customary closing conditions and obtaining clearance from the European authorities and is expected for the second half of this year.
Employing 16,000 people, Ferrovial’s Environmental Services business reported just over €1bn in revenue in 2020, and some €130m in EBITDA including dividends from project finance interests.
PreZero is an international environmental service provider with 13,000 employees at some 280 locations in Europe and North America. Providing waste disposal, sorting, processing and recycling services, the company unites all the expertise along the value chain under one roof
"This deal is consistent with Ferrovial’s strategic roadmap, which is focused on developing sustainable infrastructure. New technology, changes in citizens’ habits, and the demands of society make it necessary to adopt this approach to continue creating value for our shareholders, our stakeholders, and the communities in which we operate," said Ignacio Madridejos, CEO of Ferrovial.
After a strategic review, Ferrovial decided to sell all its Services businesses to focus on building and managing infrastructure, with which it targets 11% annual growth in EBITDA.
This strategy saw it sell Broadspectrum in Australia and New Zealand in June 2020. Divestment of the remainder of Ferrovial Services is ongoing in UK, Spain, Chile, and the US.
Image: The transaction involves the sale of waste collection, waste treatment and recycling services (Image courtesy of Ferrovial)