The Saudi CMA-regulated fund Five Capital Fund I has jointly acquired a 65 percent stake in Environment Development Company (EDCO) with France-based environmental company Suez and Japanese global trading house Itochu.
Saudi Arabia-based Environment Development Company (EDCO) is a hazardous waste management company. It is situated in the Jubail Industrial City, one of the world’s largest petrochemical industrial cities.
According to the reports, the Saudi company has the city’s top market share in the hazardous waste management sector, capable of handling 150,000 tons annually.
“Through Five Capital, we are thrilled to close this landmark transaction together with Suez and Itochu, two industrial world leaders. In the particular context of the global pandemic, this underscores the resilience and strong prospect of the Saudi economy. Kingdom Holding Company thanks to its partnership with the French Sovereign Wealth Fund is investing through Five Capital in Saudi SMEs to spur job creation, grow the local economy, and attract leading foreign corporate partners in line with His Royal Highness Crown Prince Mohammed Bin Salman’s Vision 2030. This transaction demonstrates Five Capital’s commitment to participate actively in the development and diversification of the Saudi economy”
“There is a strong demand for sophisticated waste management services in light of intensifying environmental regulations in Saudi Arabia and elsewhere, as well as the petrochemical industry’s growing awareness of environmental, social and governance issues,” said Itochu.
Five Capital Fund I
Five Capital is an investment fund sponsored by Bpifrance, the French Sovereign Wealth Fund, and Kingdom Holding Company, one of the largest Saudi-based institutional investors. Five Capital invests along with leading French corporates in Saudi Arabia, the GCC, and other geographies with a focus on private equity and real assets opportunities.
Tokyo-headquartered Itochu is one of the largest Japanese general trading companies. It has been active in non-industrial waste disposal in Britain and Serbia since the 2000s. The joint acquisition is the first overseas foray of Itochu into the hazardous waste management market.
Suez is a French-based utility company that operates largely in the water and waste management sectors. It provides innovative and resilient solutions in water management, waste recovery, site remediation, and air treatment, optimizing municipalities’ and industries’ resource management through “smart” cities and improving their environmental and economic performance.