Suez has signed a sale agreement for its Recycling and Recovery business in Australia to Cleanaway Waste Management. This agreement specifically allows for the possibility of Veolia taking control of this asset, through a takeover offer or through a direct purchase of the Australian R&R activities. Under the agreement, in certain circumstances, a selection of landfill and transfer station assets in the Sydney area would still be sold to Cleanaway.
The agreement signed with Cleanaway reflects an enterprise value of 2.52 billion Australian dollars, representing an implicit multiple of 12.9x its reported 2020 EBITDA (or 11.7x its normalized 2020 EBITDA). Suez emphasizes that this value shows the relevance of its asset rotation strategy under the Suez 2030 strategic plan. Cleanaway’s offer allows to achieve this objective of creating value in the corporate interest of the Group.