Suez, Itochu Corporation and Five Capital Fund I (a Saudi CMA-regulated fund) successfully closed the acquisition of a majority stake in Environment Development Company (EDCO), a Saudi hazardous waste management company, effective as of November 8, 2020, announced Suez. This operation will position partners in the rapidly expanding hazardous waste market in Saudi Arabia where major petrochemical industrial projects are ongoing and planned. The transaction amount for Suez represents 113.4 MSAR (25.99 M€) enterprise value.

Located in Jubail Industrial City, the company provides hazardous waste management and environmental services including transportation, treatment and final disposal to industries in Saudi Arabia, mostly petrochemical companies. Jubail is the largest industrial city in the Middle East located on the Arabian Gulf coast and holds the world’s largest single industrial development project. It is the main player in Jubail, with a capacity of processing 150K tonnes of waste per year, and currently operates landfills and two energy-from-waste facilities, as per the statement.  

This acquisition of a majority stake in EDCO is led by Suez, a worldwide leading player in environmental services, together with Five Capital Fund I (“Five Capital”), an investment fund sponsored by Bpifrance, the French Sovereign Wealth Fund and Kingdom Holding Company, one of the largest Saudi-based institutional investors and Itochu Corporation, a major trading and investment company. The company will be jointly managed by Suez and the new shareholder structure, including Saudi representatives.

“We are very pleased to have successfully closed this important acquisition in Saudi Arabia which will expand our presence in the Middle East and is at the core of our strategy in the region. With this operation, we will leverage our worldwide expertise in Hazardous Waste to seize growth opportunities with industries and to position the company as a player of excellence for Hazardous Waste management in Saudi Arabia with effective and sustainable solutions,” commented Ana Giros Senior Executive Vice President of Suez in charge of the APAC (Asia, Australia and India) and AMECA (Africa, Middle East, Central Asia) Regions and Industrial Markets & Key Accounts.

“Through Five Capital, we are thrilled to close this landmark transaction together with Suez and Itochu, two industrial world leaders. In the particular context of the global pandemic, this underscores the resilience and strong prospect of the Saudi economy. Kingdom Holding Company thanks to its partnership with the French Sovereign Wealth Fund is investing through Five Capital in Saudi SMEs to spur job creation, grow the local economy and attract leading foreign corporate partners in line with His Royal Highness Crown Prince Mohammed Bin Salman’s Vision 2030. This transaction demonstrates Five Capital’s commitment to participate actively to the development and diversification of the Saudi economy,” said Talal Al Maiman, Chairman of Five Capital Fund I & CEO of Kingdom Holding Company.