Veolia acquires waste management company TMT

Paris-based Veolia Environmental Services today announced an agreement to take a controlling interest in TMT, the waste management and treatment subsidiary of Termomeccanica Ecologia in Italy.

The company will acquire 75% of the shares in TMT based on an enterprise value (100%) of €338 million. The stake may be raised to 100% by 2012.

TMT is specialized in the design, build and operation of waste treatment facilities, including incinerators and mechanical waste-to-fuel equipment and facilities.

The company is the largest private operator in the thermal waste treatment market in Italy, managing seven treatment facilities in different regions of the country. It also has a portfolio of contracts for future plants, some of which are already under construction.

In 2006, TMT reported proforma revenue of €97 million. Revenue is projected to reach approximately €200 million by 2011.

"The thermal waste treatment market is particularly dynamic and attractive because of the stated objective of reducing volumes of waste going to landfill, coupled with public incentives for production of green energy," said Denis Gasquet, CEO of Veolia Environmental Services.

Finalization of the transaction is subject to regulatory approval.

Veolia Environmental Services is the waste to energy division of Veolia Environnement (Paris: VIE), a world leader in environmental services. Veolia Environnement posted revenue of €28.6 billion in 2006.

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