Latin America News August 2017

12 LATIN AMERICA NEWS / Issue 2 2017 , The Largest Waste Management Company in Latin America Boulevard Acquisition Corp. II, a blank check company sponsored by an affiliate of Avenue Capital Group and Estre Ambiental S.A., the largest waste management company in Brazil and Latin America, jointly announced on August 16th that they have entered a definitive agreement pursuant to which Boulevard will combine with Estre. As a result of the transaction, Estre will become a publicly listed company with an anticipated initial enterprise value of approximately $1.1 billion, implying a 7.7x multiple of its projected 2018 Adjusted EBITDA. Estre provides a full range of waste-related and environmental services to a public of more than 31 million people daily in seven Brazilian states where approximately 50% of Brazil’s population is concentrated. The company, which is expected to generate revenues of approximately $466 million and adjusted EBITDA of approximately $132 million in 2017 (considering a USD/ BRL exchange rate of $1.00 to R$3.19), focuses on collection, treatment and disposal of non-hazardous and hazardous waste to municipal, industrial and commercial customers. Showing consistently high- single-digit revenue growth in an expanding market, Estre is favourably positioned to lead in a fragmented industry with increasing regulatory support for environmentally-sound waste disposal. Today, Estre operates as an environmentally progressive, transparent and compliance- focused company. Estre’s landfill operations, which are currently focused around 13 strategically located landfills, dispose of approximately 6 million tons of waste annually. The company also expects to add five additional landfills to its operations over the next several years. Estre’s waste management infrastructure also includes two landfill gas-to-energy facilities with an installed capacity of approximately 14 MW, with the potential to generate more than 80 MW, as well as three hazardous and medical waste facilities. Estre’s management team, led by chief executive officer Sérgio Pedreiro, will continue to lead the company following the completion of the transaction. It is anticipated that the board of directors of the company will be comprised of nine members, including five independent directors with strong environmental services and compliance backgrounds. Stephen Trevor, Chief Executive Officer of Boulevard, said, “We are excited to join with Estre’s strong and disciplined leadership team to grow Brazil’s waste management industry leader both organically and by pursuing tuck-in opportunities. The Estre team is known as high-performing operators and they also have distinguished themselves in Latin America for their environmentally progressive practices and the implementation of a strong compliance program since the current leadership took over.” Sérgio Pedreiro, Chief Executive Officer of Estre, said, “Estre will continue to work hard to distinguish itself as one of the leading waste management enterprises in Latin America. With Brazilian waste tonnage growing consistently at 4% per year over the last few years and a favourable regulatory framework, this transaction provides Estre the resources necessary to continue to capture growth and to invest in acquisition opportunities. We look forward to partnering with Boulevard to accelerate the execution of our growth strategy.” Marc Lasry, Chairman of Boulevard, said, “We are making this investment at an attractive valuation at what we believe is an inflection point in Brazil’s macroeconomic backdrop and as the country’s solid waste industry continues to consolidate and institutionalise.” Additional information on Estre is available at: www.estre.com.br/en & www.boulevardacq.com