Buyout firms Kohlberg Kravis Roberts and CVC Capital Partners are building one of Europe’s largest waste management businesses, after buying Dutch waste company Van Gansewinkel for an undisclosed sum to merge with their portfolio company AVR.
KKR and CVC bought AVR in January last year from the city of Rotterdam’s council, in a deal worth €1.4 billion ($1.8 billion). The waste collection company has revenues of €500 million, and employs about 2100 people in Netherlands, Belgium and Ireland. At the time of the deal, CVC and KKR said they would use AVR as a platform for add-on acquisitions as they looked to take advantage of consolidation in the sector.
Van Gansewinkel is a larger competitor of AVR, with revenues of more than €600 million last year. It also based in the Netherlands but has a broader geographical reach outside the Benelux region, with other operations in Poland, Czech Republic, England, France and Portugal. The firm has been looking for a strategic partner to help it “realise further growth” since last year.
AVR chairman Dann den Ouden will run the new organisation for the first three months after the deal is completed, after which Van Gansewinkel chief executive Ruud Sondag will take over the running of the group. Sondag said the combined entitity would offer “the broadest service available in the market: a one-stop shop with enhanced geographic coverage.”
Oranje-Nassau Groep, a Dutch subsidiary of Wendel Investissement that took a small stake in the AVR acquisition, will also retain a minor role in the consortium following the merger.
The acquisition comes as CVC prepares to launch an expansion into North America.
The UK buyout firm is set to open a New York office, according to industry sources, its first on the continent. The Times, a UK newspaper, reported the firm has hired Chris Stadler, the head of Investcorp’s North American private equity operation, to lead the new team, and has also engaged New York headhunting firm CPI to start recruiting other dealmakers.
A source familiar with the firm said it was currently in discussion with “a number of senior people” about a role in the New York team, though stressed that no new hires were on board as yet.
Previously CVC’s expansion outside Europe has been limited to Asia, where the firm has a substantial presence through CVC Asia Pacific, its joint venture with Citigroup.