EQT, Blackstone Infrastructure to acquire Urbaser

Sweden-based EQT Group’s EQT Infrastructure VI fund and New York-based Blackstone Infrastructure have agreed to acquire Urbaser, a global provider of integrated waste management and environmental services, from funds managed by California investment firm Platinum Equity.

Founded more than three decades ago and based in Madrid, Urbaser provides municipal and industrial waste services to more than 60 million people worldwide using an integrated waste management model ranging from collection to treatment. The company has expertise in waste-to-energy and other advanced waste treatment infrastructure.

“This transaction is the reflection of the value creation potential of Urbaser and the result of an excellent collaboration with Platinum Equity over these years,” Fernando Abril-Martorell, CEO of Urbaser, says. “We are eager to continue providing leading solutions to our customers in this new phase, accelerating our investment and growth path, working hand by hand with EQT and Blackstone as our strategy partners.”

EQT says it will bring its global experience investing in sustainable waste management platforms to help Urbaser grow its leadership in Spain and other geographies. The company also plans to leverage its investment track record and established local team with experience supporting infrastructure and sustainability-focused businesses in the country.

EQT and Blackstone say they will work together to support the management team in continuing its expansion in the industrial waste segment while strengthening Urbaser’s core municipal waste operations and its role as a long-term partner to municipalities.

“Urbaser has a long track record of partnering with municipalities and industrial clients to provide them with advanced waste treatment and collection infrastructure services,” Guillermo García-Barrero, partner at EQT Infrastructure, says. “Together with Blackstone, we look forward to supporting Urbaser’s management team and employees to continue to invest in the circular economy and create lasting value for society.”

Following the acquisition of Urbaser, EQT says it will have invested more than $8.3 billion (€7 billion) of equity in Spain across business lines since it opened its office in 2015. With this transaction, EQT Infrastructure VI is expected to be 60-65 percent invested (including closed and/or signed investments, announced public offers, if applicable, and less any expected syndication).

EQT and Blackstone will each own 50 percent of Urbaser and jointly manage the company.

“As Spain’s leading waste management and environmental services platform, Urbaser is renowned for its technical expertise, decades-long experience and long-standing customer relationships,” Adam Kuhnley, co-head of European investments at Blackstone Infrastructure, says. “We are excited to partner with management and EQT to support the company’s next phase of growth as it capitalizes on strong demand for greater resource efficiency.”

The transaction is subject to customary conditions and approvals. Morgan Stanley & Co. International plc of New York and BBVA of Madrid acted as financial advisors to EQT. J.P Morgan of New York and UBS Investment Bank of Switzerland acted as financial advisors to Blackstone. New York-based Simpson Thacher & Bartlett, London-based Linklaters and Chicago-based Kirkland & Ellis acted as legal advisors to Blackstone and EQT.