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Brookfield $BAM to Acquire Brazilian Odebrecht Environmental for Reported $1.65B

Brookfield $BAM to Acquire Brazilian Odebrecht Environmental for Reported $1.65B

Reuters reported. The deal is said to be valued a 5.3 billion real ($1.65 billion), implying an 8.5x EBITDA multiple. The transaction is expected to be completed by the end of the year. Odebrecht Ambiental, also known as Odebrecht Environmental, serves more than 16 million people in over 180 Brazilian municipalities. Odebrecht Group is expected to retain the right to develop its water concession projects outside Brasil and Brookfield will re-brand Odebrecht Ambiental, which was named Foz until 2012. Brookfield, Canada’s largest alternative asset manager, has roughly $225 billion in assets under management. The firm invests in the property, power, and infrastructure sectors. The firm was formerly known as Brascan Corp. Brookfield is based in Toronto, Canada with additional offices across North America, South America, Europe, Asia, and Australia. The deal comes two months after Odebrecht Latinvest agreed to sell 57 percent of Peruvian road concession Rutas de Lima, also to Brookfield. At closing, Rutas de Lima will be owned by Brookfield and its institutional partners (57%), Odebrecht Latinvest (25%) and Sigma (18%), Odebrecht said. Odebrecht Group, Brazil’s fourth largest private group, is a global conglomerate consisting of diversified businesses in the fields of engineering, construction, chemicals and petrochemicals. The company was founded in 1944 in Salvador da Bahia by Norberto Odebrecht, and is now present in South America, Central America, North America, the Caribbean, Africa, Europe and the Middle East. The group’s leading company is Construtora Norberto Odebrecht SA, the biggest engineering and contracting company in Latin America. Odebrecht’s Braskem SA is the largest petrochemicals producer in Latin America and one of Brazil’s five largest private-sector manufacturing companies. By revenue Braskem is the fourth largest petrochemical company in the Americas and the seventeenth in the world. In June 2015, Brazilian authorities arrested the group’s chief executive Marcelo Odebrecht, in connection with an ongoing probe into bribes paid by the Brazilian oil giant, Petrobras, which has seen the last two presidents of Brazil, Dilma Rouseff (suspended from office in March 2016 and subject to an upcoming impeachment trial) and her predecessor Luiz Inácio Lula da Silva, embroiled in the scandal. In March 2016, Marcelo Odebrecht was slapped with a 19-year prison sentence, for paying over $30 million in bribes to executives of Petrobras, in exchange for contracts and influence.]]>

Beijing Enterprises Acquires Germany's EEW Energy From Waste for $1.6B

Beijing Enterprises Acquires Germany's EEW Energy From Waste for $1.6B

Beijing Enterprises Holdings (HK:0392) is acquiring Germany’s EEW Energy from Waste GmbH, from Swedish private equity fund EQT Infrastructure II, for EUR 1.4 billion ($1.6 billion). EQT Infrastructure II acquired a 51% stake in EEW in March 2013 reportedly at a valuation of EUR 1 billion, and developed the business in partnership with E.ON, one of Europe’s largest energy groups. In April 2015, EQT Infrastructure II purchased the remaining 49% of the shares reportedly at valuation of EUR 1.3 billion, after E.ON announced its group restructuring program. EEW, formerly known as E.ON Energy from Waste AG, is the market leading energy-from-waste company in Germany, also active in Luxembourg and the Netherlands. With 1,050 employees the company operates 18 Energy from Waste plants and produces electricity, district heating and process steam for industrial use. The plants are modern facilities with state-of-the-art technology, frequently updated to meet the latest technological standards. EEW operates an installed waste capacity of around 4.7 million tonnes making an important contribution to European sustainable economy and playing a vital part in the local energy infrastructure, producing in total 6 TWh of energy. In 2014, EEW generated sales of about EUR 539 million. The company, originally known as BKB, was founded in 1873 and is based in Helmstedt, Germany. “The acquisition is significant for China, as government researchers have estimated as much as 7 billion tonnes of waste is buried around China’s major cities, and the capital Beijing is now surrounded by a belt of landfill sites known disparagingly as the seventh ring road,” said Reuters Frankfurt reporter Arno Schuetze. “To ease the problem, China aims to convert 30 percent of its rubbish to electricity by 2030, up from less than 5 percent now. However, plans to build waste-to-energy plants have routinely been opposed by residents alarmed by pollution risks.” “The deal values the company at 9.5 times its core earnings, roughly in line with the 9 times core earnings that China’s Cheung Kong Infrastructure (1038.HK) paid for AVR when it bought the Dutch energy-from-waste company in 2013,” added Schuetze. Beijing Enterprises Holdings Ltd. is an investment holding company and the sole overseas listed conglomerate controlled by the Beijing Municipal Government. Its mission is to channel capital, technology and management expertise from international capital markets into mainland China. Its Piped Gas Operation segment distributes and sells piped natural gas; provides natural gas transmission, and gas technology consultation and development services; surveys and plots underground construction projects; constructs and installs gas pipelines and related equipment; and provides repair and maintenance services. Its Brewery Operation segment produces, distributes, and sells brewery products. The company’s Sewage and Water Treatment Operations segment constructs sewage and water treatment plants and other infrastructural facilities; provides construction services for renovation projects; offers sewage treatment, and water treatment and distribution services; provides consultancy services; and licenses technical know-how that are related to sewage treatment in China and internationally. The company’s Corporate and Others segment constructs waste power plants and broadband infrastructure; sells software; provides Internet services, and IT technical support and consultation services; and invests in properties. The company was formed in 1997 and is based in Wanchai, Hong Kong. It is considered a Red Chip company due to its listing on the Hong Kong Stock Exchange. “Over the past three years, we have used our industrial expertise to support EEW in strengthening its core business processes,” said Matthias Fackler, partner at EQT Partners, investment advisor to EQT Infrastructure II. “Under the leadership of a new management and complementary industrial board, this has led to broadening EEW’s customer base and a very efficient organization, setting the business up well for the future. We are convinced that Beijing Enterprises Holding is the right partner to support the further development of EEW including its continued domestic and international growth.” “EQT’s support and expertise have been instrumental to the optimization of business processes at EEW, and have provided a solid foundation for the company’s further growth. We look forward to future success together with Beijing Enterprises Holding, and to the continued development of the company,” said Bernard Kemper, CEO of EEW. EQT Infrastructure II has been advised on the deal by Morgan Stanley. Beijing Enterprises was advised by Lazard and UBS. EQT is a leading global private equity group with approximately EUR 29 billion in raised capital. EQT has portfolio companies in Europe, Asia and the US with total sales of more than EUR 17 billion and approximately 140,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership. EQT Partners is the investment advisor to all the group’s funds. It has around 370 employees, of which approximately 200 are within the investment advisory teams. EQT is headquartered in Stockholm, Sweden. The firm and its affiliates have additional offices in Amsterdam, Copenhagen, Frankfurt, Guernsey, Helsinki, Hong Kong, London, Luxembourg, Madrid, Munich, New York, Oslo, Shanghai, Singapore, Warsaw and Zurich. The company was founded in 1994 by Investor AB, US-based private equity firm AEA Investors, and SEB Asset management. Investor AB (INVEB.ST) is a Swedish industrial holding company, founded in 1916 and controlled by the Wallenberg family through their Foundation Asset Management company FAM, whose chairman is Peter Wallenberg, Jr., a board member of EQT. The company owns controlling stakes in several large Swedish companies, such as Molnlycke Health Care, Aleris and Grand Hotel, with minority stakes in in global listed companies such as such as Atlas Copco, ABB, SEB, AstraZeneca, Ericsson, Electrolux, Saab, NASDAX OMX, Husqvarna and Saab. EQT Infrastructure II is a EUR 1.925 billion fund investing in medium-sized infrastructure businesses in the Nordic region, parts of Continental Europe, and North America. Investment targets are regulated infrastructure, concession-based infrastructure, market-based infrastructure and infrastructure-related services.]]>

French Group Veolia to Acquire Kurion Nuclear Cleanup Startup for $350M

French Group Veolia to Acquire Kurion Nuclear Cleanup Startup for $350M

The acquisition completes a critical part of Veolia’s strategy in the nuclear cleanup sector. Its objectives in this area were outlined in 2013 when the company signed a collaboration agreement with the French Alternative Energies and Atomic Energy Commission (CEA) and formed Asteralis. With the addition of Kurion’s expertise and technology, Veolia is rounding out its portfolio of services to the nuclear industry and will now be able to provide all existing solutions and know-how in both nuclear facility cleanup and the treatment of low and medium-level radioactive waste. Veolia has unique expertise and know-how in the management of sensitive sites. Its Asteralis subsidiary specializes in characterizing waste and assessing nuclear facilities. Its specialist subsidiaries in water and waste treatment, and soil remediation—Veolia Water Technologies, SARP Industries and GRS Valtech—have state-of-the-art technology that can serve the nuclear industry. The combination of these technologies and know-how with that of Kurion in radioactive waste separation, vitrification and robotics for access to sensitive areas, will enable Veolia to develop a world-class industrial offer for nuclear facility cleanup and the treatment of low and medium-level radioactive waste. Synergies may be deployed in the medium term to develop an integrated offer for facility cleanup and restoration, as well as the treatment of solid and liquid waste. The offer will be proposed to the nuclear sector (facilities and research centers, that are in operation or being decommissioned), as well as to the oil industry and the pharmaceuticals industry. “With Veolia, Kurion has found the perfect partner to accelerate our growth trajectory while expanding our markets and commercial offerings. The combination of the two companies establishes a major force in the Nuclear Restoration market”, said William Gallo, Kurion CEO. “The dream when we started was deep technology, rapid growth and permanent global impact. I was extremely impressed and persuaded by the vision of Veolia CEO Antoine Frérot for growth and permanence.  I look forward to seeing positive headlines for years to come,” said Josh Wolfe, MD of Lux Capital, who founded and funded Kurion. Antoine Frérot, chairman and CEO of Veolia, said: “Bringing Kurion and its employees into Veolia is going to enable us to develop a world-class integrated offer in nuclear facility cleanup and treatment of low level radioactive waste around the world. By having all the expertise and solutions that are indispensable for the treatment of this type of waste, our company is confirming that it is what it has always been: a pioneer in the treatment and recovery of waste and resources.” The acquisition is subject to approval by US authorities, in particular US antitrust authorities. Veolia Environnement S.A. is a global leader in optimized resource management. With over 179,000 employees worldwide, the Group designs and provides water, waste and energy management solutions that contribute to the sustainable development of communities and industries. Through its three complementary business activities, Veolia helps to develop access to resources, preserve available resources, and to replenish them. In 2014, the Veolia group supplied 96 million people with drinking water and 60 million people with wastewater service, produced 52 million megawatt hours of energy and converted 31 million metric tons of waste into new materials and energy.]]>