ACS Group, the Spanish construction and services firm, has announced it has completed the sale of Urbaser, its waste management operations subsidiary. 

The buyer Firion Investments is property of Hong Kong-based Ying Zhan Investment Limited.

With tha sale of the company, the group will cut its debt by 28% to €1,164 million. ACS stated that it would make a capital gain of between €325 million (US$343 million) and €560 million (US$591 million) from the sale of the company.

According to sources, the enterprise value for Urbaser stands between €2.21 billion (US$2.47 billion) and €2.46 billion (US$2.75 billion), while the transaction price is estimated between €1.16billion (US$1.3 billion) and €1.40 billion (US$1.57 billion).

In mid January, we informed that ACS has hired BBVA and Societe Generale as financial advisors to conduct the transaction.

Urbaser S.A., which is is based in Madrid (Spain), offers street cleaning, waste removal and transporting, urban waste treatment and recycling, and management of water cycle and urban landscape, and gardening services. The company also removes and treats used mineral oils and industrial waste.

This is not the first time that ACS aims to sell Urbaser. In 2008, ACS tried to sell the company to use the funds to reduce 50 % of the Group's debt.