Fortum Recycling & Waste Unites with NG Group to Form Nordic Circular Economy Leader
Deal News | Dec 02, 2024 | Summa Equity
Summa Equity, a prominent impact investment firm, has finalized its acquisition of Fortum Recycling & Waste through the NG Group. This EUR 800 million transaction seeks to establish a leading force in the circular economy within the Nordic region. Following the acquisition, the combined entity will boast a revenue of EUR 1.2 billion, employ 3,500 people, and manage over 4.4 million tons of waste annually. The strategic merger aligns with EU Taxonomy principles and supports sustainable development goals by emphasizing waste-to-resource transformation. Bjrn Arve Ofstad has been appointed as Group CEO, leveraging his experience to steer the new organization. Funded through Summa Equity Fund III, this acquisition reflects both Summa's Resource Efficiency strategy and its commitment to UN Sustainable Development Goals. Fortum's innovation in biodegradable plastics and existing cultural synergies with NG Group position the new organization for significant growth and impact in environmental services across the Nordic countries.
Sectors
- Circular Economy
- Environmental Services
- Private Equity
Geography
- Nordic Countries – The combined entity operates across Nordic nations including Norway, Sweden, and Denmark, making this region pivotal to the article's focus.
- Europe – The strategic goals align with broader EU circular economy markets and sustainability targets, indicating a European focus.
Industry
- Circular Economy – The article details a major acquisition aimed at revolutionizing waste management within the circular economy sector.
- Environmental Services – Both NG Group and Fortum Recycling & Waste provide environmental services, including waste management and recycling.
- Private Equity – Summa Equity, a private equity firm, is central to the acquisition and investment strategy discussed.
Financials
- EUR 800 million – The debt- and cash-free acquisition cost of Fortum Recycling & Waste by Summa Equity.
- EUR 2.3 billion – The size of the Summa Equity Fund III, which was used to finance the acquisition.
- EUR 1.2 billion – The combined revenue anticipated for the new entity formed by NG Group and Fortum Recycling & Waste.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Summa Equity | Bidding Company | Company | An impact investment firm focusing on the acquisition, known for its investments in sustainability and resource efficiency. |
| Fortum Recycling & Waste | Target Company | Company | A leading provider of innovative recycling and waste management solutions in the Nordics. |
| NG Group | Acquiring Entity | Company | Part of Summa's portfolio, NG Group is prominent in providing circular solutions and environmental services. |
| Bjrn Arve Ofstad | Group CEO | Person | Appointed as the new CEO to lead the combined entity after the acquisition. |