(Bloomberg) -- Veolia Environnement SA agreed to sell its US sulfur business to private equity firm American Industrial Partners LP for $620 million, allowing the French utility to focus on areas with stronger growth prospects.
As governments bolster efforts to curb pollution, the French environmental firm seeks to boost investments in critical-minerals recycling, hazardous-waste treatment, water reuse and desalination technologies. It has earmarked €4 billion ($4.3 billion) through 2027 for acquisitions.
“This disposal is in line with our policy of continuously reshaping our portfolio of assets in line with the strategic priorities,” Veolia Chief Executive Officer Estelle Brachlianoff said in a statement on Wednesday. “The sulfuric acid regeneration business in the US is not one of our key priorities and does not offer synergies with our core activities.”
Sulfuric acid is primarily used to manufacture fertilizers, inorganic chemical manufacturing, petroleum refining, pharmaceuticals, pulp and paper and car batteries. The business had sales of about $350 million last year. Bloomberg reported earlier this month that the unit was up for sale.
Veolia, which also manages district heating networks in central Europe, agreed to buy a power plant in Hungary earlier this year. At the same time, it recently completed the sale of its water-pipe installation business for €260 million, and agreed to sell its stake in Lydec — a Moroccan water and power utility — for an undisclosed amount.
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