Veolia Environnement, a French waste management and water company, said Friday it and two private equity firms will buy German rival Sulo in a deal worth 1.45 billion euros ($2 billion).
The private equity firms involved are the Blackstone Group and Apax Partners.
With annual revenue of around 1.3 billion euros ($1.77 billion) in 2006, Sulo is the second-largest waste management operator in Germany and the market leader in the collection of municipal waste and packaging. Sulo employs 7,700 people.
The acquisition, which includes debt, will be carried out by Veolia.
Upon the completion of this acquisition, the company's waste management division, Veolia Environmental Services, will have revenue in Germany totaling approximately 1.5 billion euros ($2.04 billion).
"This acquisition strengthens our position by making us a major player in the country's waste management market," said Veolia Chief Executive Henri Proglio.
Veolia shares gained 1.9% to 59.93 euros ($81.66) in Paris.