Veolia and Séché Environnement have signed a unilateral put agreement under which Séché Environnement has committed to acquire a part of Veolia's industrial water treatment services business in France, which constitutes the remaining part of the antitrust remedies required by the European Commission in the context of the merger between Veolia and Suez. The value of the sale of the assets amounts to approximately €40 million and will be financed with Séché Environnement's available cash flow.
"This agreement marks the implementation of the last part of the antitrust remedies requested by the European Commission in the context of the merger with Suez. The total amount of the disposals currently being carried out amounts to approximately €920 million. This demonstrates the high quality of the assets and the strong competitive momentum of the environmental services sector in France," said Claude Laruelle, Chief Financial Officer at Veolia.
The assets disposal includes a portfolio of contracts with industrial companies, generating annual revenues of around €60 million and EBITDA of around €4 million. These contracts cover all aspects of the industrial water cycle (in particular effluent treatment, process water supply, facility management - including waste management - and maintenance operations), enabling the company to offer industrial companies high value-added services in the field of delegated water cycle management.
The total amount of the disposals currently being carried out amounts to approximately €920 million
According to Maxime Séché, Chief Executive Officer of Séché Environnement: "The acquisition of part of Veolia's outsourced industrial water management activities in France perfectly complements our industrial effluent management activities and will enhance the outsourcing offer provided by Séché Environnement as part of its Global Offers to leading industrial customers. The new entity will give our Group a major position in a recurring market with strong potential.”
The transaction will be implemented in compliance with the social commitments made by Veolia and fully confirmed by Séché Environnement. These include, in particular, the guarantee of employment and the maintenance of social benefits for a period of 4 years.
It is subject to consultation with Veolia's employee representative bodies and to obtaining the necessary regulatory authorizations.
Following the transaction, Veolia will remain a major player in the industrial water segment in Europe. Séché Environnement is strengthening its position in France as a key player in serving industrial clients for such activities.