Morgan Stanley acquires Spanish waste, recycling assets

Madrid-based Sacyr S.A. has accepted an offer from an investment fund managed by New York-based Morgan Stanley Infrastructure Partners to acquire its Valoriza Servicios Medioambientales (VSM) waste and recycling services business unit.

Morgan Stanley is expected to pay $459 million to acquire the majority stake in VSM, Saycr says. The VSM waste and recycling operations had earnings before interest, taxes, depreciations and amortization (EBITDA) of $86.4 million in 2022.

VSM specializes in managing a range of services in the waste recycling chain such as collection, treatment and management of waste.

Sacyr says the divestment “is framed in Sacyr’s strategy to drastically reduce its net recourse debt and focus on infrastructure P3 projects as its core business.” The company, which has a presence in the engineering, construction and utility sectors, defines P3 projects as those in which it creates added value throughout the assets’ entire life cycle: from tender bidding, design, financing, to construction, operation and maintenance.

Morgan Stanley Infrastructure Partners is an investment platform with more than $16 billion in assets under management, targeting assets that provide essential public goods and services with the potential for value creation through active asset management.

Among the more than 30 portfolio companies listed by Morgan Stanley, few seem to have a waste or recycling connection.

The New York-based Macquarie Infrastructure and Real Assets division of Australia-based Macquarie Asset Management has bought, and sometimes resold, waste and recycling-related companies for several years.

Sacyr says the final price payable by Morgan Stanley at the closing of the transaction will be adjusted by reference to a balance sheet prepared at the same closing date.