Sunday, June, 13, 2021 01:29:05

Platinum Equity, a private equity company, has recently entered a definitive agreement to acquire a sustainability-oriented company, Urbaser, from China Tianying Inc. for over €3.5 billion ($4.2 billion). The transaction is expected to be closed in the Q3 of 2021 and is subject to China Tianying shareholders’ and other customary regulatory approvals.

According to Platinum Equity’s CEO & Founder, Tom Gores, the company is thrilled to take over Urbaser, a complex company and crucial caretaker of the environment, that provides vital services. The sustainability-oriented firm has been a leading player in a sector that requires ESG best practices and operational excellence.

Over the past years, Urbaser has been making major investments in R&D activities to develop circular economy solutions such as bioproducts, bioplastics, compost, and waste oil, with a robust focus on significant advancements in waste collection practices. Its high commitment to innovation will help gain a competitive edge and is fundamental to ensuring sustainable developments of urban services, treatment of municipal and industrial waste, and integrated water management.

As per the statement made by Fengwei Guo, China Tianying’s Chief Financial Officer, the company is pleased to reach the recent agreement and provide a strong return to the shareholders. It holds a strong belief in the resources and expertise of Platinum Equity to help Urbaser witnesses a new phase of growth and investment.

Upon closing the transaction, José María López Piñol is expected to continue his role as Urbaser’s Chief Executive Officer. Santander and Citi are serving as the investment advisors, while Latham and Watkins as the legal counsel to Platinum Equity.

Igor Chacartegui, Platinum Equity’s Managing Director, has reportedly cited that Urbaser is a scalable platform with a commendable value proposition across the whole spectrum of waste management services. The company is planning to leverage the rapidly expanding environmental services sector and its technical capabilities and conduct targeted M&A activities to organically expand in key geographies.

Source credit:

https://www.prnewswire.com/news-releases/platinum-equity-to-acquire-global-environmental-services-business-urbaser-from-china-tianying-for-4-2-billion-301306521.html