Aegea completed the acquisition of Ciclus Ambiental, a solid waste management company within the Simpar group, for a total transaction amount of R$1.9 billion. This deal includes a direct payment of R$1.1 billion and taking on approximately R$804 million in debts.
The company operates the landfill in Seropédica (RJ), which is the biggest waste treatment facility in Brazil and one of the top five in Latin America. It processes around 10,000 tons of waste each day, producing biogas, electricity, demineralized water, and over 60% of the country’s urban waste biomethane, along with carbon credits.
The transaction still requires approval from Cade and the Rio de Janeiro State government. The payment will be divided into three parts: R$ 800 million upfront, and two payments of R$ 150 million in 2026 and 2027, adjusted according to the CDI.
Aegea Strategy – Strategic Planning
The acquisition of Ciclus strengthens Aegea’s strategy of finding connections between waste management, water, and sewage, which are areas the company is already involved in, marking its growth in the solid waste sector.
In Rio de Janeiro, the joint management of sewage and landfill services is expected to lead to a substantial decrease in costs related to managing landfill waste, estimated to be around 50% of total expenses. This initiative may pave the way for expanding Ciclus services to other areas within the metropolitan region and to corporate customers.
With the purchase, Aegea’s leverage increases from 3.17x to 3.32x, with approximately 70% of the amount funded and the rest covered by internal funds.
Simpar diminishes its debt.
Simpar’s sale marks its initial major asset disposal following a period of growth as a leader in the logistics, transportation, and leasing industries. This deal is expected to decrease the gross debt by around 30% and essentially eliminate the net debt of the holding company, previously standing at approximately R$ 3 billion.
The group’s consolidated leverage is minimally affected, with Simpar’s net debt at the end of the 2nd quarter standing at R$44.1 billion, which is 3.6 times the Ebitda.
