Veolia Environnement SA is preparing a sale of its French water-pipe installation business as it focuses more on waste processing, plastic recycling and energy-saving services, people with knowledge of the plan said.
(Bloomberg) — Veolia Environnement SA is preparing a sale of its French water-pipe installation business as it focuses more on waste processing, plastic recycling and energy-saving services, people with knowledge of the plan said.
The utility may seek to value the unit, known as Sade, at as much as €300 million ($329 million), one of the people said, asking not to be identified because the information is private. A sale of the division, which builds and renovates water networks, would help Veolia chip away at its mounting debt.
Sade reported revenue of €1.1 billion last year. It may attract interest from construction companies and private equity investors, though Veolia might still decide against a sale, the people said.
A spokesperson for the Paris-based utility declined to comment.
Veolia has tried to sell the unit in the past as it concentrates on growth areas in environmental services. It’s trying again after net financial debt almost doubled to €18.1 billion last year following the acquisition of Suez SA assets.
Sade, which employs almost 6,900 people and has expanded into car-charging points and energy networks, posted 78% of its revenue in France last year, according to its website. In 2020, Veolia sold Sade Telecom to Montefiore Investment for €52 million.
The utility’s latest effort to offload Sade comes as worsening droughts across Europe prompt growing demands to fix leaky water networks. French President Emmanuel Macron said last month that he’ll increase available government funds by €500 million a year to renovate pipes, boost water reuse and improve quality.
Read more: Macron Sets Out Water Plan as Exceptional Droughts Become Normal
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