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PreZero and SUEZ enter into exclusive agreement for purchase of SUEZ's Recycling & Recovery operations in Sweden

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PreZero and SUEZ enter into exclusive agreement for purchase of SUEZ's Recycling & Recovery operations in Sweden

September 22, 2020 - 09:27
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NECKARSULM, Germany and PARIS, France, Sept. 21, 2020 (Press Release) -PreZero is continuing its growth strategy and intends to further strengthen its position with a new market entry in Europe. Together with SUEZ, PreZero announced today that it has entered into an exclusivity agreement for the purchase of SUEZ's Recycling & Recovery operations in Sweden.

Already on 16th of September, the two parties announced that they entered into exclusive negotiations for the sale of certain of SUEZ’s Recycling & Recovery assets in four European countries (Netherlands, Germany, Poland, Luxembourg). The contemplated transaction will enable PreZero to continue developing successfully their waste and recycling management businesses, also in Sweden.

NORTHERN EUROPE – A NEW MARKET FOR PREZERO

PreZero, the environmental division of the Schwarz Group, is currently operating in six Central European countries with its operational sites. "With the acquisition of SUEZ's waste management and recycling business in Sweden, we intend to enter the Northern European market for the first time. Recycling has already a high priority in the Swedish waste management strategy. This enables us not only to contribute our own expertise but also to benefit from existing know-how and thus further promote a sustainable circular economy throughout Europe," emphasizes Thomas Kyriakis, CEO of PreZero.

This is also confirmed by Gerald Weiss, Managing Director of PreZero International: "We want to transfer the high level of customer orientation that PreZero stands for to Sweden and create sustainable added value for our customers. The acquisition also underlines our commitment to further growth beyond our existing markets.”

"The acquisition of the SUEZ locations opens up a special opportunity for us not only in Sweden but also for the entire Scandinavian region. With SUEZ's position as one of the leading waste management companies and the approximately 1,100 highly motivated employees in Sweden, we see great potential for our future corporate growth," says Sven Nuener, Head of Expansion at PreZero International.

Commenting on the transaction, Bertrand Camus, CEO of SUEZ, adds: “Today’s announcement is another important step in the delivery of our asset rotation plan. We are also delighted to see our R&R Swedish activities and teams joining PreZero and look forward to the opportunity to develop strategic partnerships together to accelerate the development of the circular economy”.

TOGETHER FOR A SUSTAINABLE CIRCULAR ECONOMY

Last week, both companies also announced to enter into a memorandum of understanding (MoU) to explore possibilities to develop strategic partnerships promoting the development of circular economy. The two groups would bring deep and complementary skills in waste and recycling services: SUEZ’ position and know-how in the international waste and water management markets and Schwarz Group, the largest European retailer and a pioneer in the areas of recyclables through its environmental division PreZero.

After completion of the two planned transactions, PreZero will have a total of approximately 11,400 employees in Germany, Poland, the Netherlands, Belgium, Luxembourg, Sweden, Austria, Italy and the USA.

The transaction is expected to be completed by year-end, subject to regulatory approval and customary closing conditions.