The transaction announced this Wednesday 17 was carried out entirely in exchange for shares, without cash disbursement
The constitution of Vital by Orizon waste recovery has a “transformational” effect for the company, he said Stage/Broadcast the company’s CEO, Milton Pilão. According to him, the group will consolidate its leadership in the segment and will be able to benefit from economies of scale.
The operation announced this Wednesday morning 17, was carried out entirely in exchange for shares, without cash disbursement, and enterprise valuewhich includes debts of 3 billion reais with Vital. The transaction multiple was 5.75 times EBITDA.
In the new configuration, the controllers of Orizon, reference shareholders and the manager EbCapital, will hold 30.4% of the company, while the controllers of Vital will have 30%. The remaining shares remain in free floating.
Now valued at 6 billion reais, Orizon recorded revenue of 281 million reais and net profit of 27.3 million reais in the third quarter. The combination of companies creates a group with a market value of 9 billion reais.
According to Pilão, the union of companies will increase Orizon’s waste management capacity by 62% and add 12 ecoparks (landfills with biogas plant and waste treatment) to the company, also opening spaces in places where the company is not yet active, such as Belo Horizonte, São Luís do Maranhão and São Paulo, the largest concession in America Latin.
The integration of these assets will mean that after the business combination, the group will have 34 ecoparks, four of which are licensed. “This translates into gigantic firepower to purchase inputs such as manure processing blankets,” explains the executive, while also mentioning the possibility of gains with the scale of the operation.
Furthermore, according to Pilão, this experience will be used to create and add integrated management services to the units currently operated by the company.
Thus, the company will see its market share increase from the current 11% to 18%, reaching 14 million tonnes under management, which represents the waste generated by approximately 40% of the country’s population.
In addition, Orizon is expanding its activities in integrated management, including collection and municipal concessions, which multiplies revenues and creates opportunities for organic growth, explained the executive. “This aspect provides a size, efficiency and capital structure that allows the company to grow,” he emphasizes.
The head of the investment portfolio of the Queiroz Galvão family, André Câncio, believes that the business combination will achieve synergies with a focus on sustainable growth in the biomethane segment.
“Participating in this new cycle, with an active role in governance, reinforces the commitment to a long-term strategy,” he said. The merger still depends on the approval of the Administrative Council for Economic Defense (Cade) and the municipalities where the two companies have concessions.
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