Blackstone and EQT to Acquire Urbaser
Blackstone is partnering with private equity firm EQT to buy Urbaser, a waste management infrastructure platform. The acquisition highlights a growing institutional focus on essential services and infrastructure assets. These investments are sought for their stable, inflation-hedged returns, offering a diversification play away from more volatile asset classes.
- The acquisition is valued at approximately $6.6 billion (€5.6 billion). The seller, private equity firm Platinum Equity, is making a significant return, having acquired Urbaser from China Tianying Inc. in 2021 for about $4.2 billion. - Under Platinum Equity's ownership, Urbaser's revenue grew by more than 60% and its EBITDA by 70%. This growth was fueled by 20 add-on acquisitions and the divestment of 13 non-core divisions. - Blackstone and EQT will each hold a 50% stake and jointly manage the company. As part of the deal, Platinum Equity will retain Urbaser's waste management business in Argentina, an operation that has been active for 30 years. - Headquartered in Madrid, Spain, Urbaser is a major global player in environmental services, serving more than 60 million people through a network of over 50,000 employees. Its core business is divided into Urban Services (waste collection, cleaning), Municipal Waste Treatment, and Industrial Waste Treatment. - The new owners plan to support Urbaser's expansion in the high-growth industrial waste sector while strengthening its long-term contracts with municipalities. - This deal aligns with EQT's infrastructure strategy, which focuses on companies providing essential services to society with features like inflation protection and stable cash flow. For Blackstone, the investment fits its long-term, buy-and-hold strategy for large-scale infrastructure assets in sectors including water and waste. - Shortly before this acquisition was announced, Urbaser agreed to acquire the Spanish and Portuguese businesses of the American multinational Stericycle, expanding its services into the specialized field of biomedical waste management.
