EQT AB is reportedly nearing a pivotal acquisition of a majority stake in Desotec, a prominent European environmental services provider based in Roeselare, Belgium. This move comes just four years after Blackstone Inc., the current owner, acquired Desotec. According to sources cited by Bloomberg, the deal is expected to be announced imminently and could value Desotec at around €2 billion, inclusive of debt, with Blackstone retaining a minority stake post-transaction.
EQT is making this strategic investment through its EQT Future vehicle, building on an existing 15% minority stake held by EQT Mid Market Europe. The rationale behind this acquisition lies in EQT's commitment to enhancing its portfolio in the environmental services sector, which is experiencing growing demand due to increased focus on sustainability and environmental protection. This acquisition not only allows EQT to expand its footprint in a vital industry but also positions Desotec for accelerated growth with the backing of EQT's resources and expertise.
The transaction is part of a broader trend of renewed private equity deal-making in Europe, driven by favorable equity valuations and the mounting pressure on funds to monetize assets and deliver returns to their investors. As private equity firms seek to capitalize on high valuations, this deal signals a potential uptick in activity in the sector.
The timeline for the deal's closure is expected to be rapid, with an announcement anticipated soon. This swift progression reflects the urgency and strategic alignment of both firms in pursuing this transaction. Following the acquisition, stakeholders, including shareholders and employees of both EQT and Desotec, will be closely monitoring the integration process and the anticipated benefits of the partnership.
From a regulatory standpoint, EQT's acquisition of Desotec is likely to require standard antitrust reviews, although the specifics of any necessary approvals have not been detailed. Overall, this acquisition marks a significant step for EQT in enhancing its investment portfolio and underscores the vibrant landscape of private equity in Europe.