CPP Investments Announces New Investment in Global Environmental Services Provider

MADRID, June 1, 2023 /CNW/ - Canada Pension Plan Investment Board (CPP Investments), through its wholly owned subsidiary, CPP Investment Board Europe S.àr.l has agreed to acquire a 24.99% stake in FCC Servicios Medio Ambiente Holding, SAU ("FCC Medio Ambiente"), the environmental services division of Fomento de Construcciones y Contratas, S.A. ("FCC"), a diversified conglomerate listed in Spain. CPP Investments has agreed to pay €965 million (C$1,438 million) for the stake.

FCC Medio Ambiente is a leading waste management operator in Iberia, the U.K. and Central Europe, with a growing presence in the U.S. By capitalizing on FCC Medio Ambiente's extensive expertise in recycling and energy recovery and its strong platform for growth, this investment provides CPP Investments an access point to the global circular economy megatrend. The recovery of materials and products, and converting waste into a productive economic resource, is a key pillar of its Infrastructure investment strategy.

The waste sector is at the forefront of circular economy initiatives in Europe, driven by the E. U. Circular Economy Action Plan and Waste Framework Directive which aims to increase waste recycling and recovery, reduce landfill use and convert it into useful secondary raw materials. A significant number of country and state-level initiatives are gaining momentum, prompting a major shift from landfill and exported waste, diverting it instead to recycling and recovery. This is also driven by climate change directives and greater consumer sensitivity to environmental sustainability. 

"FCC Medio Ambiente's resilient business model provides essential services to an established client base that is well-diversified across geographies and segments," said James Bryce, Managing Director, Global Head of Infrastructure, CPP Investments. "As major economies seek to meet circular economy objectives, businesses like FCC Medio Ambiente, with differentiated scale, reputation and technological expertise, are well-positioned to capture sustainable growth, providing an excellent long-term investment opportunity for CPP Investments."

The waste industry is an important participant in the drive to net zero efforts through the reduction in emissions through increased recycling and other recovery.  FCC Medio Ambiente is currently aligning its business to achieve net zero by 2050.

CPP Investments is an active global infrastructure investor with 28 direct investments in 13 countries totalling C$52 billion as at March 31 2023.

Closing of the transaction is subject to receipt of customary closing conditions and regulatory approvals.

About CPP Investments

Canada Pension Plan Investment Board (CPP Investments^™) is a professional investment management organization that manages the Fund in the best interest of the more than 21 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm's length from governments. At March 31, 2023, the Fund totalled $570 billion. For more information, please visit www.cppinvestments.com  or follow us on LinkedIn, Facebook or Twitter.

SOURCE Canada Pension Plan Investment Board

Steve McCool, Public Affairs and Communications, CPP Investments, Tel: [phone], Email: [email protected]