Ferrovial has reached an agreement to sell its Environmental Services business in Spain and Portugal to PreZero, an enterprise of Schwarz Group. The transaction involves the sale of environmental services, waste collection, waste treatment, and recycling business in Spain and Portugal, representing an enterprise value of EUR1,133 million (US$1.33 billion)(including equity and debt).

The sale is expected to provide Ferrovial with a capital gain of approximately EUR317 million (US$374.62 million) assuming an equity value of EUR950 million (US$1.12 billion) at the time of the signing. Ferrovial’s Environmental Services business delivers treatment and recycling services for public and private clients and includes 140 plants under management, where it processes 5,6 million tons of waste every year. It also manages street cleaning, source-sorted waste collection, and green area maintenance in 600 municipalities in Spain, serving over 15 million people.

Final completion of the deal is subject to customary closing conditions and obtaining clearance from the European authorities and is expected in the second half of 2021.