Waste management firm Averda has inked a deal with Zenath Trading Enterprises to acquire its Dubai-based recycling and waste management business. The acquisition was administered by Averda’s inhouse team and supported by Hogan Lovells LLP as Averda’s legal advisor for the transaction.
The acquisition is said to enable Averda to capitalise on the strength of its operations, and enhance long-term value, while also positioning Averda as the leading waste services operator in the UAE. The deal will see Averda significantly increase the number of private and public sector clients in its portfolio.
According to the statement, Zenath Recycling & Waste Management was established in 1988 and offers collection and disposal services, and is said to service over 1,000 clients across Dubai. Following the deal, Averda will inherit 38 trucks and a workforce of 150 employees.
“This acquisition enables Averda to continue to deliver on its growth in the Middle East market. I am delighted with today’s announcement and look forward to ensuring clients continue to receive exceptional levels of service from the enlarged business. Averda’s global expertise, technology and full suite of waste management services combined with the operational capability of Zenath Recycling will leverage Averda’s position to serve the multitude of corporates across Dubai,” said Malek Sukkar, CEO of Averda.
The acquisition will allow Averda to realise several synergies, including further economies of scale and the ability to cross- and up-sell end-to-end waste services to a larger client base, the statement said. This is expected to further enhance the profitability of its operations in the UAE.
Sukkar states that Averda has built a resilient waste management business based on four key pillars: providing a fully integrated offering; long-term contracted revenue; geographic diversification and a strong customer base of both private and public sector clients.
“We will continue to focus on growing our market share, both organically and by carefully targeted, selective bolt-on acquisitions across the UAE,” he explained.
Zenath Trading Enterprises’ lead financial advisor was Protiviti Middle East and legal advisor was Baker McKenzie Habib Al Mulla.