GrowthGate Capital Corporation will acquire 33.33 per cent of Averda International, an integrated waste management concern for an undisclosed amount.

Averda has solid waste operations in the Middle East and North Africa. It services more than 2 million people located in some 500 communities, and has consolidated annual revenues of circa $100 million and expected net profits margin of over 15 per cent for 2008.

Averda is a pioneer in the waste management industry in the Middle East with a solid track record for managing municipal and other non-hazardous waste.

It adopts a ‘Green Company’ policy in producing waste-generated fertilizers and other organic by-products, operating efficient recycling programs, exploring bio-fuel extraction processes, and abiding by low emission standards.

'By partnering with GrowthGate, Averda is determined to play a central role in the regional waste management sector by bringing together its expertise, resources and, intimate knowledge of markets to capitalize on the current urbanisation boom and the unprecedented waste generation ratios, for years to come,' said Malek Sukkar, Averda’s CEO.

GrowthGate (managed by Keystone) follows a ‘buy and build’ model by partnering with management to build emerging growth businesses into enduring organisations. 

This deal marks the fourth direct equity investment by GrowthGate since its capitalisation in mid 2007, and the first in a ‘Green Company’.

GrowthGate’s portfolio companies include Able Logistics Group, Gama Aviation Holding and Roots Group.-TradeArabia News Service