Pitch Best Deal 2022: AVR – AEB

Name of the deal: AVR acquires AEB from Municipality of Amsterdam 
Date announced: 8 December 2021 
Date closed: Expected Q4 2022 
Published value: 450 million euros 
Buyer(s): AVR 
Target: AEB Holding 
Seller: Municipality of Amsterdam 

Involved firms and advisors 

Involved firms and advisors buy side:  
Barclays (M&A Advisory), EY (Financial Due Diligence), Stibbe and Clifford Chance (Legal advisory Corporate M&A) 

Involved firms and advisors target:  
CMS (Legal Advisory Corporate M&A), DNV (Consultancy) 

Involved firms and advisors sell side:  
AXECO (M&A Advisory), KPMG (M&A Advisory and Financial Due Diligence), Pels Rijcken and Droogleever Fortuijn (Legal Advisory Corporate M&A) 

Pitch  

Brief description deal / Deal outline  
AVR Afvalverwerking (AVR) on the acquisition of a 100% equity stake in the Amsterdam-based energy-from-waste company AEB Holding N.V. (AEB) from the municipality of Amsterdam.   

Why should this deal win the Award for Best Deal 2022?  
There was a lot at stake for those involved because the social impact was enormous. The deal formed an end to a very successful transaction, which gained a lot of press attention, and also to a very tumultuous period for AEB. A deal that forms the end of a very successful auction process, in which a landmark company in the Municipality of Amsterdam will be acquired by a successful and solid Rotterdam based Company. These companies are aiming to join their strengths to be able to serve all involved stakeholders. AVR, the Netherlands-based waste processing company, also involved in the production of electricity from waste burning, has agreed to acquire 100% AEB Holding NV, an Amsterdam-based waste management company, that makes energy from waste as sustainably and clean as possible, from the City of Amsterdam. AVR is an experienced player in the Dutch market and has an excellent reputation in the area of sustainability and the capture of CO2. The sale of AEB is the result of a competitive sale process, in which AVR emerged as the most suitable candidate-buyer for AEB. The price was an important sales criterion for the Amsterdam municipality. However, several other themes were also of high importance, such as the transaction certainty offered by the potential buyer and the municipality was also looking for a new shareholder for AEB with a long-term perspective, who would enable AEB to continue offering waste processing and heat supply. Sustainability was also one of the selling criteria. There was a lot at stake for those involved because the social impact was enormous. The deal formed an end to a very successful transaction, which gained a lot of press attention, and also to a very tumultuous period for AEB. The sale of AEB is the result of a competitive sale process, in which AVR emerged as the most suitable candidate-buyer for AEB. Executing an efficient transaction process, in which the seller is a Municipality, with council members and the college of mayor and aldermen all meticulously following the transaction process and being involved, made this a very interesting, complex and important landmark case for all involved parties. 

Deal rationale:  
AVR, the Netherlands-based waste processing company, also involved in the production of electricity from waste burning, has agreed to acquire 100% AEB Holding NV, an Amsterdam-based waste management company, that makes energy from waste as sustainably and clean as possible, from the City of Amsterdam. 

What is the impact of this deal for the company?  
AVR is an experienced player in the Dutch market and has an excellent reputation in the area of sustainability and the capture of CO2. The sale of AEB is the result of a competitive sale process, in which AVR emerged as the most suitable candidate-buyer for AEB. 

What is the impact of this deal for the direct stakeholders?  
The price was an important sales criterion for the Amsterdam municipality. However, several other themes were also of high importance, such as the transaction certainty offered by the potential buyer and the municipality was also looking for a new shareholder for AEB with a long-term perspective, who would enable AEB to continue offering waste processing and heat supply. Sustainability was also one of the selling criteria. 

What is the impact of this deal on society?  
There was a lot at stake for those involved because the social impact was enormous. The deal formed an end to a very successful transaction, which gained a lot of press attention, and also to a very tumultuous period for AEB. 

What was most complex about this deal?  
The sale of AEB is the result of a competitive sale process, in which AVR emerged as the most suitable candidate-buyer for AEB. Executing an efficient transaction process, in which the seller is a Municipality, with council members and the college of mayor and aldermen all meticulously following the transaction process and being involved, made this a very interesting, complex and important landmark case for all involved parties.