The acquisition of environmental services firm EnviroServ and its subsidiaries by French-headquartered water and waste management utility Suez is set to reinforce the latter’s position as an international leader in industrial and municipal waste treatment activities, as well as strengthen its position on the African continent.

The deal will also enable EnviroServ to grow across South Africa and the region, leveraging its strong capabilities, combined with Suez’s support, to invest in infrastructure and operations, enrich its commercial offer and develop new waste treatment modes, contributing to a more circular economy.

“The delivery of sustainable waste solutions to the African market is a critical need for the continent. EnviroServ Waste Management, a leading and environmentally responsible waste management company, is looking forward to the wealth of knowledge and experience that our new shareholders will bring to the South African waste markets,” says EnviroServ CEO Dean Thompson.

“This will further enhance our existing product and service offering and create a robust platform for innovation and growth.”

The transaction was announced on June 9 and Suez, together with partners African community investment holding company Royal Bafokeng Holdings (RBH) and African Infrastructure Investment Managers, completed the acquisition of EnviroServ on September 30, following the approval of local antitrust authorities.

“EnviroServ’s acquisition is a major step towards Suez’s new ambition. As the leading waste management company in South Africa and a key player on new waste treatment modes, EnviroServ will enable the group to expand its activities in Southern Africa, as well as support its business in other geographies,” says Suez chairperson and CEO Sabrina Soussan.

The acquisition will enable Suez to further balance its international exposure, contributing to the company’s long-term aim of increasing international turnover from the current 25% to about 40% by 2027.

The transaction further highlights the group’s strategic focus on waste management and selective growth in key international markets.

“This acquisition creates a strong footprint for Suez in the fast-growing South African market, as well as in neighbouring African countries,” Soussan comments.

Founded in 1979, EnviroServ collects, treats and disposes of general and hazardous waste to treatment and disposal facilities across South Africa, Mozambique and Uganda.

“With a staff of 2 200 people and a turnover in excess of €80-million, it is the only player in South Africa with full national coverage and a complete offering for industries, including on-site management, collection, treatment, remediation and related services,” she says, highlighting that EnviroServ owns and operates a fleet of 175 specialised waste-transport vehicles, 10 treatment and disposal sites and manages a further five facilities within the three countries where it operates.

EnviroServ also contributes to the circular economy by recycling 125 000 t and managing 1.7-million tonnes of hazardous and general waste a year.

EnviroServ’s customer portfolio includes a high number of multinational firms operating in the petrochemicals, manufacturing, metallurgical and mining sectors.

Soussan believes that the skills, expertise and talents of EnviroServ’s team will support Suez Group in expanding its activities in South Africa and in other geographies.

Further, the large portion of local shareholding also enables EnviroServ to remain committed to retaining its broad-based black economic-empowerment Level 1 rating, the highest possible.