Banco Sabadell : According to press reports, FCC is negotiating with Urbaser the acquisition of its environmental services business in Scandinavia (Sweden, Norway, Denmark and Finland). The operation, which is in its final phase, could be valued at over €300 million. According to the same source, Urbaser Nordic’s business generates an EBITDA of around €40m (~2.8% of FCC).
Assessment: Pending further details, the deal could be a good strategic fit given that FCC already has a consolidated environmental services business in several Central European countries (UK, Austria and Czech Republic among others). Moreover, it has cash available after the sale of 25% of its Services division (€965m) even after a potential buyback of ~7% of its capital (~€400m). In any case, the impact is likely to be limited due to the relative size of the operation (~2.5% of FCC’s EV).
