Enterprise bought by AmeyCespa owners for £385m
21 February 2013
Ferrovial, the Spanish parent company of waste management firm AmeyCespa, is set to strengthen its presence in the UK market after agreeing to purchase utilities firm Enterprise in a £385 million deal.
The deal will see Enterprise merged with services firm Amey, which alongside waste firm Cespa -another wholly-owned subsidiary of Ferrovial - forms AmeyCespa.
According to Ferrovial, the deal, which is subject to final approval from the European Commission, will double the size of Amey’s operations in the UK.
Enterprise’s waste management arm provides waste and recycling collections to local authorities and commercial businesses throughout the UK, as well as street cleansing, grounds maintenance, highways maintenance and engineering. The company reported a profit of £61 million in 2010.
It currently holds several waste collection contracts with councils in the UK and encountered some problems with its services for Ealing and Northampton and Daventry councils in 2012 (see letsrecycle.com story).
A spokeswoman for AmeyCespa told letsrecycle.com that it was not yet known if AmeyCespa would take over Enterprise’s waste contracts in the UK following the completion of the deal.
'The newly combined company will have the capability to offer our clients added value integrated services in an efficient way'
Santiago Olivares, chief executive, Ferrovial
AmeyCespa entered the UK market in 2007, with Ferrovial seeking to combine Amey’s experience in the service sector with Cespa’s knowledge of waste management.
The company operates a number of waste processing facilities throughout the UK. Its flagship facility is the 200,000 tonne a year capacity mechanical biological treatment (MBT) plant at Waterbeach, Cambridgeshire, as well as a newly opened materials recycling facility (MRF) on the site.
It has also been named as the preferred bidder by Milton Keynes council to design, build and operate a waste treatment facility in the borough in October 2012, and is awaiting planning approval for a large scale energy-from-waste facility in Allerton North Yorkshire.
Santiago Olivares, chief executive of Ferrovial Services, said: "The acquisition of Enterprise will create value through synergies derived from integrating it into Amey. The deal strengthens our position in markets with growth potential. In terms of client types, range of services and geographical footprint, the two companies are highly complementary and offer great potential to share resources.
“The newly combined company will have the capability to offer our clients added value integrated services in an efficient way.”
The purchase sees Spanish interest in the UK waste management market grow, with Spanish firm FCC already a major player in the sector following the purchase of Waste Recycling Group – now FCC Environment - for £1.4 billion in 2006 (see letsrecycle.com story).
Current Amey chief executive Mel Ewell will be appointed as chief executive of the newly combined company.
Commenting on the deal, he said: “This acquisition will be pivotal for the UK marketplace, creating a business with the breadth and depth of service to respond to today’s market dynamics. Public and regulated clients are seeking radical reform in the shape of more efficient services which don’t compromise on quality or the service to the public.
“Our leading asset management and consulting capability, paired with Enterprise’s additional range of services, will ensure that the combined company can deliver a truly transformational service.”