We analyse the purchase of companies in the water cycle management sector from the corporate finance perspective. In this case we talk about Gestagua, which has bought 100% from Valoriza Agua.
Companies in the water cycle management sector have recently been moving towards inorganic growth through M&A transactions. These mergers and acquisitions are helping to achieve rapid growth, avoiding barriers to entry such as long-term concessions and helping to achieve geographic diversification that would otherwise be very difficult to achieve.
Companies in the water cycle management sector have recently been tending towards inorganic growth through M&A transactions.
These mergers and acquisitions are helping to achieve rapid growth, avoiding barriers to entry such as long-term concessions and helping to achieve geographic diversification that would otherwise be very difficult to achieve.
Valoriza Agua's business model
Valoriza Agua is a company dedicated to the management of the water cycle, this company, a subsidiary of Sacyr, was in charge of the complete water treatment process. That is, from the collection, treatment, cleaning and management of water.
This business is not only dedicated to the management of wastewater treatment plants and the construction of infrastructures for the same, but also includes water treatment for the agri-food industry and acid water treatment for mining, among other business units.
The business, which in addition to operating on national territory has businesses in Chile and South America, has consolidated its position thanks to the know-how it has acquired and its capacity for innovation through customised services.
The company had a turnover of €53m in ordinary revenues in the last financial year.
Gestagua (Saur) acquires Valoriza Agua
On 1 October, Gestagua, a subsidiary of Saur, acquired Valoriza Agua's 100%. Saur, a company specialising in water management, owned by the Swedish investment fund EQT, set its sights on Valoriza Agua to consolidate its expansion throughout Spain, following its strategic plan for inorganic growth.
In this way, Saur also gains control of Emalsa, reaching a 66% shareholding and gaining control of the main water management company in Las Palmas.
So far its presence was significant in France, Saudi Arabia, Cyprus and Poland among other countries, with this acquisition and its strengthening in the major cities of Senegal and Algeria, Saur intends to expand and maximise performance through synergies and geographic diversification.
Similar acquisitions
Other mergers and acquisitions that have been relevant in the water lifecycle sector are the following, which have in common the involvement of investment funds that are bringing together companies in the same sector to achieve synergies.