Ambipar Response views new acquisitions in the United States with caution and considers the United Arab Emirates

As the first Brazilian company to be listed on the New York Stock Exchange (NYSE) this year, Ambipar Response has an appetite for more acquisitions in the United States but admits that the global macroeconomic scenario calls for “caution” when signing new deals. The company’s ambition, with a focus on prevention and management of industrial and environmental accidents, is to become a major local player in the country and, at the same time, expand into other parts of the world. Among the markets that pique their interest are the United Arab Emirates.

Ambipar Response went public on the NYSE on Thursday (9th) amid a highly volatile environment due to fears of further interest rate hikes in the US. It is the first Brazilian company to set foot on Wall Street in 2023, after a year with few issuers from the country. Its shares began trading last Monday, the 6th.

The debut on the NYSE follows Response’s completion of a merger with HPX Corp, a special purpose acquisition company (SPAC), also known as a “blank check” structure. Already listed in New York, it has Brazilian partners Rodrigo Xavier, former Bank of America executive, Bernardo Hees, and Carlos Piani. The transaction capitalized Ambipar Response at over $174 million and resulted in its arrival on Wall Street.

For the Ambipar group, listing on the NYSE “represents everything”

For Tércio Borlenghi Júnior, owner and Chairman of the Board of Ambipar Group, the listing on the NYSE is a “very important” step, especially in a “difficult scenario.” With few words and a low-profile style, he says the step “represents everything” for the group.

“We are a Brazilian company bringing know-how here. There is currently no player that consolidates all of this,” says Borlenghi Júnior in an exclusive interview with Broadcast. As he walks towards the NYSE opening bell, he does not hide his excitement: “Imagine the excitement, we are a Brazilian company.”

For Ambipar Response, North America represents a dual growth vector. In addition to the space to attack and grow in the environmental crisis management segment, which is one of the main focuses of US President Joe Biden’s agenda, the segment is extremely fragmented in the country. The largest company in the sector has less than 3% of the domestic market, and its operations are more focused on waste.

“The space here in the United States is very large,” says Borlenghi Júnior, adding that the company’s appetite for new acquisitions is “total.”

Ambipar Response’s latest move in this direction was the acquisition of the US company Witt O’Briens, a global leader in crisis and emergency management. Valued at $161.5 million, it was the largest acquisition in the company’s history.

Rodrigo Xavier, Co-Chairman of HPX Corp, highlights the opportunity for Brazilian company Ambipar Response to become a “relevant” player in the world. According to him, HPX Corp is not entering the company as a “mere financial investor” but aims to add value and remain in the company’s capital for the long term. “To me, the SPAC is intellectual capital, not just financial,” says Xavier to Broadcast.

Company enters Colombia and considers the UAE

Present in 39 countries and a leader in Brazil, Chile, and Peru, Ambipar Response is entering Colombia, where it has also made an acquisition, but it is considering exploring new markets such as the United Arab Emirates. “The United Arab Emirates have a lot to offer,” says Borlenghi Júnior. Without providing further details about a future entry into the country, he says the potential is significant due to the oil activity, which reinforces the need for environmental crisis management.

According to Thiago Costa, CFO of Ambipar Group, Ambipar Response has a pipeline of acquisitions on its radar but will grow “prudently.” “We are looking. Of course, in 2023, with caution, right? The cost of capital has increased significantly, not only in Brazil but also here. We are looking, and we will not stop growing,” says the executive in an interview with Broadcast. The focus is on concentrating new acquisitions in the US, but other markets such as Brazil are not ruled out… read more on Estadão 03/10/2023

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