Ambipar accelerates internationalization

Valor Econômico – Printed – 06/29/2021

Ambipar wants to replicate its Brazilian operations in the waste management and emergency response divisions for Chile and the rest of Latin America. To this end, the company plans to integrate the operations of the Chilean companies Disal and Suatrans, which were eventually acquired by its subsidiaries, Environmental ESG Participações and Emergência Participações.

Since the initial public offering (IPO) in July last year, Ambipar has already made 14 acquisitions in the total amount of R$ 1.4 billion. The amount, which has not yet been fully disbursed, already exceeds the amount of BRL 1.08 billion raised in the IPO, which leads the company to fulfill the promise made to investors that the money from the operation would be used in acquisitions that could increase its presence in the international market.

Disal, which had the acquisition of 100% announced on Sunday night, operates in the transformation of waste into products. Suatrans, in turn, works with emergency responses in cases of damage to the environment – ​​Ambipar already owned 50% of the company and announced yesterday, after the market closed, the purchase of the remaining slice.

As in Brazil, the objective is to form a shared service center to operate the two segments – called by Ambipar “Environment” and “Response” – also in Chile.

“We are going to complete the integration in the administrative, operational and commercial part. Ambipar seeks internationalization in Latin America, especially in Chile, Peru and Paraguay, where these companies already operate”, said Fábio Castro, investor relations director, in an interview with Valor.

With the announcement of the purchase of Disal, Ambipar’s shares ended yesterday at a high of 8.63% on B3, at R$ 43.05, the highest price since the company’s debut on the stock exchange.

Ambipar is also looking for synergies with new operations. The company wants to gain space among clients in the mining segment where Disal, for example, already has a strong presence.

“The company will bring technology and ‘know how’ in the mining area, which are still quite archaic here, while Ambipar will take solutions from the pulp and paper segment there, a sector in which we are leaders”, explained the executive. Ambipar transforms, for example, waste from the pulp and paper segment into soil nutrients.

In addition, according to Castro, the acquisition of 100% of Suatrans will make Ambipar start operating in a new segment in Brazil: pre-service in case of accidents on highways. “Sutrans provides pre-hospital care on the roads, with an ambulance, tow truck and patrol. Today, we do not work with these services in Brazil”, he said.

The executive informed that the company has even been consulted by concessionaires to offer the service in Brazil.

Currently, Suatrans has 30 bases in Latin America and intends to reach 40 in one year, according to the executive.

Prior to the acquisition of Ambipar, the private equity fund Australis held stakes in both companies – 66% in Disal and 50% in Suatrans.

For the acquisition of Disal, the company will pay a total of R$ 800 million in cash, corresponding to an EV/Ebitda multiple (calculation that measures how many times a company is worth compared to its operating profit) of 8.5 times.