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Citadel Capital acquires two solid waste management firms

Citadel Capital, a private equity firm in the Mena region, has acquired a controlling stake in two firms in the solid waste management sector.

The Egyptian Company for Solid Waste Recycling (Ecaru) and the Engineering Tasks Group (Entag) are managed as one firm and will be grouped under a single holding company that will serve as the core of Citadel Capital’s platform investment in the solid waste management sector.

The new company, Entag Holding, will be Citadel Capital’s 18th platform company.
 
“We are absolutely delighted to announce the creation of our 18th platform investment, which will be controlled through the Eco-Logic Opportunity-Specific Fund,” says Marwan Elaraby, managing director of Citadel Capital. “The solid waste management sector is under-developed across the region, with a limited number of large companies operating and much of the waste not being properly treated. There is ample room for geographic expansion and vertical integration, including expansion into waste-based industries.”
 
Established in 1997, Ecaru has contracts to collect and process more than 500,000 tons per year of agricultural solid waste, particularly rice straw. Although the company presently focuses on the conversion of rice straw into compost, it has pioneered a technology to produce animal fodder and is also investigating the feasibility of producing medium-density fibre board, fuel pellets and paper from rice straw.
 
Ecaru became one of the first Egyptian organisations to sign a greenhouse gas emission reduction purchase agreement with the World Bank in the summer of 2008, agreeing to sell 325,480 tons of carbon dioxide equivalent greenhouse gas emission reductions to the Carbon Fund for Europe.
 
Ecaru’s sister-company Entag, established in 1995, specialises in the design, manufacturing and erection of solid waste management systems. Equipment supplied is partly procured from waste management equipment producers and partly designed and manufactured locally in Egypt.
 
Citadel Capital intends to continue to grow the Ecaru and Entag businesses as a majority shareholder alongside the existing shareholders and management team through a series of cash injections in 2009 and 2010.
 
The two companies employ more than 1,500 staff members, with head count fluctuating seasonally.

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