Averda, the leading end-to-end waste management company in developing countries, announces the acquisition of Zenath Recycling & Waste Management LLC (“Zenath Recycling”), the Dubai based waste collection business from Zenath Trading Enterprises LLC for an undisclosed sum.
Zenath Recycling was established in 1988, offering collection and disposal services, servicing over 1,000 clients across the Emirate of Dubai. They provide these services across Deira, Al Quoz, Al Awir, Mirdif and Jebel Ali Village and holds a sizeable market share in the Emirate of Dubai. As part of the acquisition, Averda will inherit a fleet of 38 trucks and a workforce of about 150 employees.
The acquisition of Zenath Recycling offers Averda an opportunity to capitalize on the strength of its operations, enhance long-term value & market position for 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.
The acquisition will also 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. This is expected to further enhance the profitability of its operations in the UAE.
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.
Malek Sukkar, Chief Executive Officer of Averda, commented: “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. We will continue to focus on growing our market share, both organically and by carefully targeted, selective bolt-on acquisitions across the UAE.”
The acquisition was administered by Averda’s inhouse team, supported by Hogan Lovells LLP as Averda’s legal advisor for the transaction.
Zenath Trading Enterprises LLC’s lead financial advisor was Protiviti Middle East and legal advisor was Baker McKenzie Habib Al Mulla.