In our SektorReport Sustainability Q3 2024, we focus on the Waste Management & Technologies sector (E5). After taking a detailed look at Vidia Equity's investment in the Danish wind energy company Ringkøbing in the last issue, we now turn our attention to the topic of waste management. Of particular interest is the recent acquisition of a division of Renewi plc by Biffa Ltd, the UK's second largest waste management company. This transaction underlines the increasing importance of the circular economy and the ongoing consolidation in the industry. 

Since the fourth quarter of 2022, EBITDA multiple valuations in the sustainability sector have remained relatively stable between 8.0 and 10.5x. The Food, Agriculture & Forestry (E7) sub-sector remains the frontrunner in terms of valuations, while Waste Management & Technologies continues to have the lowest multiples. 

Despite geopolitical uncertainties, such as the upcoming US presidential election, the long-term outlook in the M&A sector remains promising. The global transition to a circular economy, for example through the “EU Circular Economy Action Plan” and numerous other initiatives, is encouraging investment in sustainable waste management systems and making the sector increasingly attractive to investors looking for long-term and sustainable value creation.

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