EQT Infrastructure has agreed to acquire Kommunekemi A/S, Denmark’s leading hazardous waste management company, for an enterprise value of DKK 260m.
EQT infrastructure, a €1.2 bn fund advised by EQT Partners, a global private equity advisory firm founded in 1994 headquartered in Stockholm, Sweden, aquired the company from The Local Government Denmark (LGDK), The Municipality of Copenhagen and The Municipality of Frederiksberg.
As above mentioned, the enterprise value has been agreed to DKK 260m and EQT Infrastructure will contribute 65% as equity, whereas the remaining 35% will be in the form of bank loans provided by Nordea Bank Danmark A/S and arranged by Nordea Debt Capital Markets.
The fund together, with the board and management of Kommunekemi, will own 100% of the company.
Kommunekemi has three incineration lines at its state-of-the-art plant in Nyborg which constitutes Europe’s single largest facility of its kind. It has a total capacity of approximately 185,000 ton per year.
According to an official statement, QT Infrastructure views Kommunekemi as an attractive investment opportunity owing to both its strong market position as a safe provider of hazardous waste solutions to the Danish and international public and private clients as well as its leading technologies.
Commenting on the transaction, Lennart Blecher, Partner at EQT Partners, advisor to EQT Infrastructure, said: “We see Kommunekemi as a very promising investment. It forms an integral part of Denmark’s environmental infrastructure combined with a strong European position. There are attractive opportunities both in Denmark and the rest of Europe and we are looking forward to building a leading European company in the area of hazardous waste treatment”.
Under EQT Infrastructure ownership, the company will continue to focus on its strong customer relations and to process hazardous waste in a very secure manner combined with high energy efficiency. It is expected to further enhance Kommunekemi’s overall positive environmental contribution and safety and environmental standards will be lifted even higher through new investments.
EQT Infrastructure expects that this will enhance Kommunekemi’s revenue and earnings substantially over the coming years expecting to own the company for a period of 5-7 years.
The new board of directors will include the following members of EQT’s network of industrialists and senior advisors:
– Ulf Berg, chairman of Midland Cogeneration Venture, SAG GmbH and EMS Chemie AG, ex CEO and chairman of Sulzer AG;
– Ole Andersen, ex senior partner EQT, chairman of ISS;
– Jan Bruzelius, ex CEO IL Recycling;
– Svante Östblom, strategy consultant with extensive waste management experience: