The Valoriza deal was conducted through investment funds operated by Morgan Stanley Infrastructure Partners, a private infrastructure investment platform within MSIM.
With about $16bn in assets under management, MSIP offers a global platform for private infrastructure investments.
Since its founding in 2006, MSIP has made approximately 35 investments in a variety of industries, including utilities, digital infrastructure, transportation, and energy transition.
Valoriza serves mainly governmental bodies (mostly municipalities) in Spain.
The demand for Spain to fulfil the European Commission’s 2035 landfill reduction objective will likely create a significant value-add investment opportunity for Valoriza as the country transitions to more sustainable recycling and waste-to-energy options.
Valoriza is a concession-based company that has medium to long-term contracts with local municipalities that are inflation-linked and have minimal volume exposure.
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By GlobalDataWith 11,000 workers spread across Spain, Australia, and Colombia, it is a reputable business with over four decades of expertise that offers crucial waste treatment and collection services to more than 12 million people.
Alberto Donzelli, co-head of Europe for MSIP commented: “As a well-established player in the waste sector with over 20 years of experience, we believe Valoriza, with its innovative environmental services offering, is well placed to contribute to the transformation of the Spanish waste market. We look forward to working with the company’s entrepreneurial management team to continue serving the local municipalities and further expanding the company’s waste treatment division.”
Following the completion of many deals in the region, including FastFiber and Omtel in Portugal and Madrileña Red de Gas in Spain, the purchase of Valoriza bolsters MSIP’s performance in Iberia.
Furthermore, the Morgan Stanley board of directors has announced that Edward Pick will become the bank’s chief executive officer from January 1 2024.