Dive Summary:
- The Veiolia ES North America sale process came to an end today as Star Atlantic Waste Holdings, a Highstar Capital portfolio company, purchased the business unit for a total transaction value of $1.909 billion.
- The sale is subject to oversight by US antitrust officials but it is expected to be completed by the end of the year.
- For the calendar year 2011, the group had revenue of $818 million and operating income of $110 million. The transaction will reduce the capped strapped parent company Veolia Environment's debt load by $1.820 billion.
- Highstar Capital's existing environmental services portfolio includes Advanced Disposal and Interstate Waste Services
- The combined business will operate under the name of Advanced Disposal Services. With operations in 20 states, revenues of approximately $1.4 billion, a fleet of over 3,000 trucks, and 5,450 employees, it will be the largest private waste business in the U.S.
From the press release:
Paris, July 19, 2012. Today, Veolia Environnement’s wholly owned subsidiary, Veolia Environmental Services North America, has agreed to sell the US solid waste activities of Veolia Environnement to Star Atlantic Waste Holdings LP, a portfolio company of Highstar Capital, a US-based infrastructure fund manager, for a total transaction value of $1.909 billion.
Following the completion of this transaction, Veolia Environnement’s net debt will be reduced by around $1.820 billion (€1.489 billion). In the US waste business, Veolia Environnement will continue to grow its activities in hazardous waste and industrial services.
Antoine Frérot, Chairman and Chief Executive Officer of Veolia Environnement, stated: “This divestment is the second significant step in the execution of the strategic plan laid out last December. The transformation of Veolia is progressing as planned.”
The sale is subject to approval by the US antitrust authorities and is expected to be finalized by the end of the year. This divestiture is the second significant step of the €5 billion asset divestment program to be completed before end 2013, as announced by Veolia Environnement during its Investor Day, on December 6, 2011. In the first seven months of 2012, Veolia Environnement will have signed 60% of the value anticipated for the planned divestiture program. Veolia’s US Solid Waste businesses had revenue, operating cash flow and operating income for 2011 of $818 million, $212 million and $110 million respectively.
