SPE acquires controlling stake in waste management company SkipWaste

SOUTH AFRICA – Sanlam Private Equity (SPE), a division of Sanlam Investments, has acquired a controlling stake in Gauteng-based waste management company, SkipWaste.

As a business that neither owns nor operates landfill sites, SkipWaste is said to be a strong fit for SPE, with the firm noting its sustainability-led commitment.

SkipWaste leverages its market share in waste logistics to drive and offer environmentally conscious waste management solutions to its clients, through waste diversion from landfill disposal towards recovery, recycling and alternative disposal.

SPE made the acquisition through its new private equity fund, SPE Mid-Market Fund, one of three impact-focused funds in the Sanlam Investors’ Legacy Range launched in 2020 to create and preserve 27 000 jobs, while still delivering value for investors.

SkipWaste becomes the fourth acquisition in the Fund, following that of Cavalier Group, Absolute Pets and Q Link, announced in May last year.

Gift Pule, Investment Associate at SPE, said the waste management industry in South Africa has seen a lot of private equity activity from local and global players, which is positive for the economy and the environment.

“Besides its long track record, strong market share in waste logistics and experienced management, SkipWaste was particularly attractive to us as it neither owns nor operates landfill sites and it has a strategic focus on diverting waste towards alternative and more sustainable forms of waste disposal,” said Pule.

He said the business is now poised for growth and diversification through diversion of various organic, food and construction waste from more clients seeking “greener” waste management solutions and increased contribution to the circular economy through recycling and conversion.

SkipWaste operates out of three strategically located depots across Gauteng several transfer stations and a 13-hectare waste treatment facility in Springfield, located south of the Johannesburg central business district.

McDonald CEO of SkipWaste said: “SkipWaste is excited to partner with our first institutional investor, with a sustainable waste management strategy, capital for growth and commercial expertise to unlock the company’s full potential.

“Having been a part of this business for most of my life, it was important for us to select the right partner to help us realize our next growth phase.”

It is estimated that South Africa generates approximately 108 million tonnes of total waste annually, 90% of which still goes to landfills.

SkipWaste has an integrated business model, spanning onsite waste management, primary storage, waste logistics, recycling and recovery as well as alternative disposal and conversion.

With more than 1 000 clients and 3 000 sites primarily in Gauteng, SkipWaste is indicated to be well-positioned to sustain its access to waste-at-source and the company’s ability to redirect more waste towards alternative forms of disposal.

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