Ferrovial has reached an agreement to sell its environmental business in Spain and Portugal to PreZero, a subsidiary of Germany’s Schwarz Group. The process takes place as part of the Ferrovial Servicios divestment, a division from which the environmental business has been dismantled to facilitate negotiation and sale. The deal, which includes the transfer of garbage collection, treatment and recycling, amounts to 1,133 million euros, which includes capital and debt, and represents a capital gain of about 317 million, assuming that share value 950 million signature time, which can vary slightly due to accounting adjustments. The final closing of the deal is pending the usual terms and regulatory clearances by European authorities and is expected to take place in the second half of 2021.
Ferrovial’s environment district recorded annual sales of 1,018 million in 2020, operating gross of 130 million euros (including dividends) and its portfolio reaching 2,177 million at the end of the year. The company has 16,000 employees. Providing essential processing and recycling services to both public and private clients, thanks to the management of 140 plants, it treats 5.6 million tons of waste each year. In addition, it cleans streets, selective collection and maintains green spaces in more than 600 municipalities throughout Spain for more than 15 million citizens.
“This operation represents a breakthrough in Ferrovial’s strategic plan, which focuses on developing sustainable infrastructures,” said Ignacio Madrigos, the company’s CEO, in a statement. “New technologies, changes in the habits of citizens and the demands of social organizations make this approach essential to continue creating value for our shareholders and owners. interest in the company and the communities in which we operate.” “We are pleased to leave the Environmental Services business in Spain and Portugal in the hands of PreZero. An international waste management company with the highest ESG standards [medioambientales, sociales y de gobierno corporativo, por sus siglas en inglés]Ferrovial relied on the mediation of Morgan Stanley and the advice of Uriah and Mendes.
“The planned acquisition is the next step in PreZero’s expansion, as we want to expand our activities in southern Europe. Ferrovial is an excellent environmental management company that perfectly complements PreZero’s investment portfolio. In the process, we expect to expect Valuable synergies and additional starting point for the further development of the circular economy in Europe.The company belongs to the German Schwarz Group, an international environmental services provider with about 13,000 employees and about 280 locations in Europe and North America.Schwartz pushed against the German group also Raimonds and the French Brabec.
New strategic direction اتجاه
Ferrovial conducted a strategic review of all businesses months ago, with the goal of focusing the company’s future on infrastructure, the number one source of value and profitability for its shareholders. As a result of this decision, it has classified all of its services as “available for sale”. Along the same lines, the company has adopted Horizon 24, a strategy for 2020-2024 that places Ferrovial’s priority focus on strengthening, building and managing infrastructure, along with businesses in mobility, water and electricity.
The plan seeks profitability based on 11% annual growth in EBITDA (total operating profit) with a focus on excellence, sustainability, innovation, efficiency, business choice and markets. The sale of the environmental business in Spain and Portugal constitutes a new step forward in the divestiture of Ferrovial Servicios, following the sale of Broadspectrum, with operations in Australia and New Zealand, in June 2020. Disinvestment in the rest of Ferrovial Servicios’ business continues its course in the United Kingdom, Spain, Chile and the United States, These are the main markets in which the company engages in activities in this field.
In these coordinates, the group headed by Rafael del Pino is also contemplating an alliance with the Acciona Services Division to integrate business in Spain, excluding the environment, as developed by EL PAÍS.
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