Summa Equity Acquires Fortum Recycling and Waste
In July, Finnish company Fortum signed an agreement to sell its recycling and waste business to the thematic impact investment firm, Summa Equity through its portfolio company NG Group.
The total consideration on a debt- and cash-free basis is approximately 800 million Euro, a joint press release informed. The transaction is subject to customary closing conditions and is expected to be completed in the fourth quarter of 2024. As reported, the divestment of the recycling and waste business is part of Fortum’s strategic review of its circular solutions businesses, which was initiated in August 2023. “Fortum’s strategic focus is on delivering clean energy and driving decarbonization of industries in the Nordics. Fortum’s core operations are located in the Nordics and consist of CO2-free power generation, electricity sales, and district heating and cooling. The Circular Solutions businesses are not in the core of the strategy.” The recycling and waste business to be sold would comprise municipal and industrial waste management and end-to-end plastics, metals, ash, slag and hazardous waste treatment and recycling services. “These businesses are located in Finland, Sweden, Denmark and Norway and currently employ approximately 900 employees.”
After the divestment, Fortum plans to continue the strategic review of its remaining circular solutions’ businesses: the turbine and generator services, battery recycling business, as well as ownerships in biobased solutions businesses and a UK-based waste-to-energy business.
About the investor
Summa Equity is an impact investor focusing on three thematic areas: Resource Efficiency, Changing Demographics, and Tech-Enabled Transformation. According to the information, the purpose of Summa is to invest in solving global challenges. The equity firm has approximately five billion Euro in assets under management and has made over 30 platform investments across three funds raised to date.
(Published in GLOBAL RECYCLING Magazine 3/2024, Page 15)
