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January 22, 2007
Eindhoven, 22 January 2007
A consortium consisting of funds advised by Kohlberg Kravis Roberts & Co. (KKR) and CVC Capital Partners (CVC) has reached an agreement to acquire all of the outstanding share capital of the Van Gansewinkel Groep. The transaction is subject to regulatory approval and the works council’s consent procedure.
The consortium will combine Van Gansewinkel with AVR, which was acquired by the same consortium less than a year ago from the Municipality of Rotterdam. The acquisition of Van Gansewinkel complements AVR’s waste management portfolio, adding Van Gansewinkel’s collection network to a prominent waste treatment operation across Benelux. The new organisation will become a fully integrated waste management company covering the entire waste chain from consultancy through collection, to recycling and end-treatment creating a European top player in waste management. Both companies are also active in recycling, which bolsters the combined company’s future potential.
Daan den Ouden, AVR Chairman of the executive board, will head-up the new organisation until three months after the transaction when he will be succeeded by Van Gansewinkel’s CEO, Ruud Sondag. Daan den Ouden will stay attached to the company as an advisor.
The Van Gansewinkel Groep is a leading European waste service provider with a total 2006 turnover of more than €600 million and around 4,000 employees. The company provides expertise in total waste care, with its main activities in waste collection, (pre)treatment, and recycling of waste and material flows. Van Gansewinkel has diversified its operations outside of the Benelux, its home market, to become active in other markets such as the Czech Republic, Poland, France, Portugal and the U.K..
Last March, the consortium led by CVC and KKR acquired AVR, a market leader in the collection of domestic waste with a total turnover of €500 million, which treats over 4 million tons of processed waste annually. The company employs a workforce of around 2,100 and has operations in the Netherlands, Belgium and Ireland.
Van Gansewinkel CEO, Ruud Sondag, commented: “Last summer we stated that we were looking for a new shareholder to help Van Gansewinkel’s expansion plans and to strengthen our position in Europe. Our joining forces with AVR will enable us to offer our combined customer base the broadest service available in the market: a one-stop-shop with enhanced geographic coverage. I’d like to take this opportunity to thank Leo van Gansewinkel for founding and creating such a successful and entrepreneurial waste services company and I will continue to foster the values of Van Gansewinkel going forward.”
AVR CEO, Den Ouden, commented: “Our combination with Van Gansewinkel creates an integrated waste management company across the value chain and is a major step in achieving our ambition of creating a leading European waste services group with the backing of our shareholders. I am pleased to have been involved in such an important step in the expansion of the business and look forward to helping the company grow further.”
KKR Partner, Reinhard Gorenflos, added: “This acquisition demonstrates once again our commitment to back talented management teams to help them achieve their ambitions. We have delivered on our promise to grow AVR as a business and will continue to work side by side with the managers of the combined group in their quest to become a leading European waste management company.”
Hugo van Berckel from CVC said: “Van Gansewinkel and AVR are world-class companies and the combination will enhance their offering to their customers, while solidifying their position as a Netherlands-based European leader in waste management. CVC intends to continue supporting the combined business' further growth, both organically and through acquisitions.”
Press office contact details:
|AVR:||Paul Braams||+31 (0) 18 127 4302 /
+31 (0) 654 695345
|Van Gansewinkel Groep:||Marc Ruis||+31 (0) 40 294 4455 /
+31 (0) 653 745234
|CVC Capital Partners:||James Olley||+44 (0) 20 7404 5959|
|KKR:||Zoe Watt||+44 (0) 20 7251 3801|
Kohlberg Kravis Roberts & Co
Kohlberg Kravis Roberts & Co. (KKR) is one of the world’s most experienced private equity firms specialising in management buyouts. Founded in 1976, it has offices in New York, Menlo Park, London, Paris, Hong Kong and Tokyo. Over the past thirty years, KKR has invested in more than 145 transactions with a total value of over US$ 274 billion. KKR made its first investment in Europe in 1996, and in aggregate has invested over US$7.0 billion of equity in 22 European companies through a wide range of transactions. These include the largest leveraged buyouts to date in the Netherlands and France, 10 investments in Germany, and 17 European transactions with a value of over US$1 billion. KKR’s strong interest in the waste industry is also documented by its ownership of Duales System Deutschland – the German “green dot” recycling system and BIS Cleanaway, Australia.
More information about KKR is available at: www.kkr.com
CVC Capital Partners CVC
Capital Partners, founded in 1981, is a leading international private equity and investment advisory firm active in Europe and Asia. In January 2007, CVC closed its Tandem Fund at €4.12 billion, This brings CVC's total funds raised and managed since 1996 to in excess of €18 billion.
CVC is one of the few buyout groups structured for both the European mid and large buyout markets. It operates an integrated network of 17 offices with an experienced team of 150 professionals led by 17 partners who are responsible for evaluating investments, providing strategic input to portfolio companies and maintaining a regular dialogue with investors. The current European portfolio totals 41 investments.
CVC has acquired 236 companies to date for a total consideration of over US$ 86 billion. During 2006, CVC completed nine transactions in Europe and Asia, investing a total of €2.1 billion targeting business opportunities in a variety of industries and geographical locations. These deals include Belgian Post, Formula Group, AVR, DWB, Skylark, DCA and PBL Media, Shinwa Co and PTP. Skylark was the largest MBO in Japan while PBL Media is Australia's largest media group.
More information about CVC is available at: www.cvc.com