Merger in waste management

Just a few months after the initial talks, the companies announced Helvetia Environnement and SRS announced the agreement of their merger on February 22, 2017. The alliance now makes the two largest players in French-speaking Switzerland the nationwide industry leader in waste management. In the future, SRS will be one of the subsidiaries of the Helvetia Environnement Group, along with Transvoirie, Sogetri and Leman Bio Energie.

The management of SRS will be integrated into the management of Helvetia Environnement. In the medium term, this cooperation will allow synergies between the four subsidiaries in terms of geographical presence, optimization of waste sorting facilities and reduction of Co2 emissions thanks to the use of biofuels made from waste.

Already well established in French-speaking Switzerland, Helvetia Environnement Group will now operate nationwide with agencies in Basel and Solothurn and, thanks to a network of partners, in the cantons of Berne, Zurich and Ticino. The Group and its subsidiaries currently employ 500 people who serve 17,000 customers on a daily basis, including major industrial companies and 490 public entities. In 2017, sales are expected to exceed CHF 120 million.

Helvetia Environnement has carried out a significant capital increase in which the founding shareholders and two other shareholders have participated. These are on the one hand UBS Clean Energy Infrastructure Switzerland KGK as an existing shareholder, advised by Fontavis AG in Baar, and on the other hand a new Swiss partner, the fund Reichmuth Infrastruktur Schweiz KGK. This fund is managed by Reichmuth & Co Investment Management AG, which is based in Lucerne.

Changed market environment

Both companies decided on this merger in order to be prepared for the increasing concentration of waste management in Switzerland. Since their foundation, both Helvetia Environnement and SRS have developed further partly thanks to external growth, i.e. by incorporating local companies.

The scarcity of natural resources and increasingly stringent regulations are making the collection, separation and recycling of waste ever more complex. As a result, major investments for qualified personnel and specialized teams are increasingly essential. This sector requires wide-ranging expertise and considerable financial capacity to meet the expectations of municipalities, industrial companies and SMEs in Switzerland. Whether industrial waste such as construction waste, scrap iron, wood and cardboard, or biowaste, each subsidiary requires specific logistics and special expertise to sort and transport the material to the appropriate recycling centers.

Thus, the complementarity of the two companies in terms of fields of activity and geographical presence will allow the development of an even more comprehensive range of services. In addition, the new size of the Group will stimulate innovation and strengthen relations with public authorities and local communities.

Common values

This merger also focuses on the human aspect, as the employees of Helvetia Environnement and SRS share strong common values. These are expressed in their work through three components of sustainable development:

• Environmental Component: Promoting responsible segregation, recycling and transformation of waste into new recyclables or energy, mitigating greenhouse gas emissions.
• Economic component: conservation of natural resources through increased use of waste resources and production of alternative energy (biofuel)
• Social component: improvement of training, working conditions and safety of employees, contribution to professional reintegration.

In their day-to-day work, both companies have actively contributed to building a circular economy model that they now intend to apply nationwide.

Vincent Chapel, CEO of Helvetia Environnement, said: "This merger strengthens the competitiveness of the Helvetia Environnement Group. The company demonstrates its ability to think ahead and strengthens its capacity to meet the future challenges of waste management. Setting up automated sorting plants, optimizing existing recycling capabilities and increasing the separation rate for each material. Thanks to our new strength, we want to make a significant contribution to responsible economic activity".

Frank Blanpain, Director of SRS, affirmed, "The creation of a nationwide company will allow us to share our investments and improve the services offered to our customers. In addition, the merger will stimulate the innovation capacity of our teams responding to tenders from municipalities and companies. We will offer efficient waste management strategies while strictly complying with all environmental standards."

Text: Voxia Communication/Michael Donath