Cases & Deals

SUEZ to sell its SUEZ Recycling & Recovery operations to PreZero

Clients Suez SA

Jones Day advised the French listed company SUEZ SA in its contemplated largest sale of SUEZ Recycling & Recovery operations - excluding plastic recycling and hazardous waste treatment activities - in four continental Europe countries: the Netherlands, Luxembourg, Germany, and Poland to PreZero, the environmental division of Schwarz Group, as part of exclusive negotiations. The parties also signed a memorandum of understanding to explore possibilities to develop strategic partnerships promoting innovative waste management solutions to accelerate the development of the circular economy in Europe.

SUEZ R&R benefits from leading positions in the Netherlands, Luxembourg, Germany, and Poland which covers the entire Recycling and Recovery value chain, from Collection to Sorting, Processing, and Treatment. It handles a broad range of waste types (wood, glass, paper, metal) within its 125 sites run by its c.6,700 employees. In 2019, the perimeter has generated c.€1,109 million in sales and c.€100 million EBITDA on a pro forma standalone adjusted basis. The contemplated transaction values the business transferred at €1,100 million (Enterprise Value).

During recent years, Schwarz Group, largest European multinational retail group that is family-owned and operates grocery shops under the Lidl and Kaufland brands, has been developing in waste and recycling management, notably after several acquisitions to further expand its geographical footprint and expertise in the sector. Schwarz Group positions itself as an innovation driver in the industry with the vision of creating a world in which resources are no longer wasted thanks to closed loops. Zero waste, 100% reusable material. After completion of the transaction, Schwarz Group will employ a total of approximately 10,300 employees in Germany, Poland, the Netherlands, Belgium, Luxembourg, Austria, Italy, and the U.S.

The transaction is expected to be completed in Q1 2021, subject to regulatory approval and customary closing conditions including the consultation of employee representative bodies.

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