By Mathias de Rozario
(Reuters) -French water management, waste management and energy services group Veolia said on Friday it had agreed to buy U.S.-based hazardous waste company Clean Earth from Enviri for $3 billion.
“Following this acquisition, the group’s turnover in hazardous waste will increase to 5.2 billion euros ($6.00 billion). We are the global leader in this business and are now number two in the United States,” CEO Estelle Brachlianoff said in a call with journalists.
Brachlianoff said the company expected to see $120 million in cost benefits by year four after the deal was closed, enabling it to deliver earnings per share growth from the second year onwards.
“It will also enable Veolia to strengthen its presence in fast growing industries such as retail and healthcare allowing it to offer a full range of environmental services on a nationwide basis,” the group said
Veolia also raised the 2024-2027 target for its hazardous waste activities, aiming for earnings before interest, taxes, depreciation and amortisation (EBITDA) growth of at least 10% over the guidance period.
The company aims to close the transaction in mid-2026.
“This cash acquisition is an opportunity to accelerate portfolio rotation, we will therefore announce an additional 2 billion euros in disposals over the two years following the deal,” Brachlianoff said.
Veolia is aiming for 8.5 billion euros of portfolio turnover over its 2024-2027 strategy period, as it seeks to transform its portfolio towards a more international and technological positioning with more embedded growth, Brachlianoff said.
($1 = 0.8664 euros)
(Reporting by Mathias de Rozario in Gdansk, editing by Milla Nissi-Prussak)
