EQT Infrastructure II has reached an agreement in principle to sell market leading energy-from-waste company EEW Energy from Waste (“EEW”) to Beijing Enterprises Holding (“Beijing Enterprises”). The agreement is only subject to clearance under the German Foreign Trade and Payments Ordinance. The transaction is expected to close end of February 2016. The equity purchase price amounts to Euro 1,438 million and the transaction represents the largest Chinese direct investment in a German company to date.
Throughout its ownership, EQT Infrastructure II has supported EEW in significant growth, both organically and through selected strategic acquisitions. The management team and corporate governance structure have been strengthened, and EQT Infrastructure II has driven transformation of EEW into a highly efficient organization focused on providing long-term, environmentally friendly waste disposal solutions and energy-from-waste production.
Matthias Fackler, Partner at EQT Partners, Investment Advisor to EQT Infrastructure II, said: “Over the past three years, we have used our industrial expertise to support EEW in strengthening its core business processes. Under the leadership of a new management and complementary industrial board, this has led to broadening EEW’s customer base and a very efficient organization, setting the business up well for the future. We are convinced that Beijing Enterprises Holding is the right partner to support the further development of EEW including its continued domestic and international growth.”
EQT Infrastructure II acquired a 51% stake in EEW in March 2013, and developed the business in partnership with E.ON, one of Europe’s largest energy groups. In April 2015, EQT Infrastructure II purchased the remaining 49% of the shares after E.ON announced its group restructuring program.
Bernard Kemper, CEO of EEW, added: “EQT’s support and expertise have been instrumental to the optimization of business processes at EEW, and have provided a solid foundation for the company’s further growth. We look forward to future success together with Beijing Enterprises Holding, and to the continued development of the company.”
EQT Infrastructure II has been advised by Morgan Stanley.
Matthias Fackler, Partner at EQT Partners, Investment Advisor to EQT, +49 89 2554 99 520
Kerstin Danasten, EQT Press contact, +46 8 506 553 34
EQT is a leading global private equity group with approximately EUR 29 billion in raised capital. EQT has portfolio companies in Europe, Asia and the US with total sales of more than EUR 17 billion and approximately 140,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.
EQT Infrastructure II is a EUR 1.925 billion fund investing in medium-sized infrastructure businesses in the Nordic region, parts of Continental Europe, and North America. Investment targets are regulated infrastructure, concession-based infrastructure, market-based infrastructure and infrastructure-related services.
For further information, please visit www.eqt.se
EEW is the market leading Energy-from-Waste company in Germany, also active in Luxembourg and the Netherlands. With 1,050 employees the company operates 18 Energy from Waste plants and produces electricity, district heating and process steam for industrial use. The plants are modern facilities with state-of-the-art technology, frequently updated to meet the latest technological standards. EEW operates an installed waste capacity of around 4.7 million tonnes making an important contribution to European sustainable economy and playing a vital part in the local energy infrastructure, producing in total 6 TWh of energy. In 2014, EEW generated sales of about EUR 539 million.
More information can be found on www.eew-energyfromwaste.com
About Beijing Enterprises Holding
Beijing Enterprises Holdings Limited is the sole overseas listed conglomerate controlled by the Beijing Municipal Government for channeling capital, technology and management expertise from international market into Beijing’s development priorities. As a professional public utilities provider, BEHL is a diversified conglomerate with focus on gas business, water services business, green industry and solid waste treatment, and beer business.
Further information about BEHL can be found at www.behl.com.hk.