Veolia Environmental Acquires TMT, Italy's Largest Thermal Waste Treatment Co.

Date: May 31, 2007

Source: Veolia Environnement

Veolia Environmental Services acquires TMT, the Termomeccanica subsidiary specializing in waste management and treatment, in Italy

Veolia Environmental Services today announced the signature of an agreement for a controlling interest in TMT, the waste management and treatment subsidiary of Termomeccanica Ecologia in Italy. The transaction concerns 75% of the shares based on an enterprise value (100%) of €338 million. The stake may be raised to 100% by 2012.

TMT is specialized in the design, build and operation of waste treatment facilities (incinerators and mechanical, MBT*-type waste-to-fuel treatment facilities).

The company is the largest private operator in the thermal waste treatment market in Italy, managing seven treatment facilities in different regions of the country. It also has a portfolio of particularly interesting contracts for future plants, some of which are already under construction.

In 2006, TMT reported proforma revenue of €97 million. In view of projects already on stream, revenue should increase significantly in the coming years and reach approximately €200 million in 2011.

Denis Gasquet
Chief Executive Officer of Veolia Environmental Services.
"The thermal waste treatment market is particularly dynamic and attractive because of the stated objective of reducing volumes of waste going to landfill, coupled with public incentives for production of green energy. Veolia Environmental Services will therefore be well positioned to respond competitively to future tenders to build new facilities in Italy. In addition to the Italian market, TMT will serve as a gateway for development throughout Southeast Europe, an area faced with similar needs, thanks to its high-quality teams and strong references. This acquisition also puts us in a stronger position to develop our services to industrial organizations (special industrial waste, remediation of polluted soils,...)."

Henri Proglio
Chairman and Chief Executive Officer of Veolia Environnement
"This new acquisition, which generates an expected rate of return higher than our standard criteria and will enhance the Company's net income from the second year, strengthens Veolia's position in the Italian and Mediterranean markets"

Selon Enso Papi
Chairman of Termomeccanica and of TMT's board of directors
"This alliance with a world leader like Veolia Environmental Services will allow TMT to optimize management and operation of its facilities and pursue expansion of its activities in Italy and Southeast Europe."

Finalization of the transaction is subject to the completion of the last acquisition audits and the approval of the competition authorities.

  • MBT: Mechanical and Biological Treatment

Veolia Environmental Services
Veolia Environmental Services, the division of Veolia Environnement in charge of waste management business, is the only provider of a full range of services for hazardous and nonhazardous solid and liquid waste all over the world.
The company provides waste management and logistics services (collection, pipe systems maintenance, cleaning, waste flow management), as well as materials recovery and recycling.
Veolia Environmental Services generated revenue of €7.4 billion in 2006.

Veolia Environnement
Veolia Environnement is world leader in environmental services.
With more than 300,000 employees the company has operations all around the world and provides tailored solutions to meet the needs of municipal and industrial customers in four complementary segments: water management, waste management, energy management and freight and passenger transportation.
Veolia Environnement recorded revenue of €28.6 billion in 2006.

Veolia Environnement
Marie-Claire Camus - Tel : 01 71 75 06 08
Veolia Environmental Services
Florence Vanin - Tel : 01 71 75 06 98
Zahra Itzkowitch - Tel : 01 71 75 07 08

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