SUEZ has entered into an exclusive agreement with Veolia for the sale of French subsidiary OSIS, multi-specialist in sewerage services. The agreement secures a solid future for OSIS business. The transaction, which is binding subject to regulatory approval and customary closing conditions including the consultation of employee representative bodies, is expected to be completed in the first half 2021.
With 2,500 employees located in over 130 local service centres in France, OSIS operates complementary business segments: sewerage and liquid waste collection, industrial cleaning and building hygiene. Over a century of experience, OSIS has developed strong expertise and specialized equipment to serve its diversified portfolio of customers, from corporates to local authorities and individuals. In 2019, OSIS made c.€ 311 million revenue and c. € 23 million EBITDA on a pro forma adjusted basis.
The transaction is the first major announcement concerning SUEZ’s asset rotation program intended to align its activities around the company's 'Shaping SUEZ 2030 strategy'. The contemplated sale values the business transferred at c.€ 298 million (around US$354 million), representing a multiple of c.13 times 2019 pro forma adjusted EBITDA.
SUEZ was advised by DC Advisory and Racine.
Bertrand Camus, Chief Executive Officer of SUEZ, said: "We are pleased to announce the proposed sale of OSIS for a value that recognizes the human and technical asset developed in the company. We believe that we have found a very good home for the business and its employees for the next phase of its development. The transaction reflects the quality of the businesses within SUEZ, including those which are part of our asset rotation plan."