Cube Infrastructure Fund III invests in Sepur

Luxembourg and Paris, February 24, 2022 – Cube Infrastructure Managers (“Cube”), a leading European mid- market infrastructure investor, has agreed to acquire a majority stake in the leading French pure-play municipal waste collection operator Sepur through its fund Cube Infrastructure Fund III in partnership with its founder Hervé Matuszewski, who will remain a minority shareholder. Closing of the transaction remains subject to clearance by the competent antitrust authority.

Founded in 1965, Sepur is the largest pure-play municipal waste collection player in France. Sepur serves c. 220 municipalities with more than 30 agencies, 1,700 vehicles and 3,200 FTEs. Revenues are predominantly derived from a diversified portfolio of more than 200 medium- to long-term contracts with local authorities. Remuneration is largely availability-based, providing resilience to economic cycles. The company is led by a highly experienced management team which has been key to the continuous success of the company over the past 10 years (achieving a CAGR of +5.9% and +7.6% of revenues and EBITDA respectively), including the recent geographic expansion into Normandie, Centre-Val de Loire and Gironde.

Through the partnership with Sepur’s founder, Cube intends to support the further growth of the business and its further geographic expansion in the French market which is driven by sustainable growth drivers such as the increasing focus of large integrated environment groups on commercial and industrial waste management, the regulatory trend towards increasing waste sorting and separate collection (including biowaste) and the requirement to invest in environmentally friendly fleets.

Following its successful previous investments in the waste incineration sector, the investment in Sepur marks Cube’s first investment in the municipal waste collection market, reflecting Cube’s capacity to build on its track record and knowledge to invest in new markets with strong infrastructure characteristics, in line with Cube’s strategic focus on mid-sized infrastructure operators providing essential services to local communities with superior growth potential.

Jérôme Jeauffroy, Managing Partner of Cube Infrastructure Managers, commented: “Having followed the company for a long time, we are very proud to announce this new partnership with Sepur’s founder Hervé Matuszewski. This investment illustrates Cube’s strategy to build on our existing sector knowledge to identify attractive new investment opportunities with strong infrastructure characteristics. Sepur is a pure player in the regulated municipal waste collection market and we look forward to supporting the company and its management in addressing the opportunities which this dynamic market offers.”