Averda, a leading end-to-end waste management company in developing countries, said it has reached an agreement with Zenath Trading Enterprises to acquire its Dubai-based recycling and waste management business.

Zenath Recycling & Waste Management was established in 1988, offering collection and disposal services, servicing over 1,000 clients across the emirate.

The company has a major presence in Deira, Al Quoz, Al Awir, Mirdif and Jebel Ali Village in Dubai and holds a sizeable market share in the emirate.

The acquisition of Zenath Recycling offers Averda an opportunity to capitalise on the strength of its operations, enhance long-term value and market position for Averda as the leading waste services operator in the UAE.

As part of the acquisition, Averda will inherit a fleet of 38 trucks and a workforce of about 150 employees, said the company in a statement.

The deal will see Averda significantly increase the number of private and public sector clients in its portfolio, it added.
 
The acquisition will also allow Averda to realise several synergies, including further economies of scale and the ability to cross- and up-sell end-to-end waste services to a larger client base. This is expected to further enhance the profitability of its operations in the UAE, it added.

CEO Malek Sukkar said: "This acquisition enables Averda to continue to deliver on its growth in the Middle East market. I am delighted with today’s announcement and look forward to ensuring clients continue to receive exceptional levels of service from the enlarged business."

"Averda’s global expertise, technology and full suite of waste management services combined with the operational capability of Zenath Recycling will leverage Averda’s position to serve the multitude of corporates across Dubai," noted Sukkar.

Averda, he stated, has built a resilient waste management business based on four key pillars: providing a fully integrated offering; long-term contracted revenue; geographic diversification and a strong customer base of both private and public sector clients.

"We will continue to focus on growing our market share, both organically and by carefully targeted, selective bolt-on acquisitions across the UAE," he added.
 
The acquisition was administered by Averda’s inhouse team, supported by Hogan Lovells LLP as Averda’s legal advisor for the transaction.
 
Zenath Trading Enterprises' lead financial advisor was Protiviti Middle East and legal advisor was  Baker McKenzie Habib Al Mulla.-TradeArabia News Service