Aegea Saneamento Acquires Ciclus Ambiental in USD 370mn Deal to Expand Environmental Services Portfolio

In a move that marks its fourth major acquisition of the year, Brazil’s largest private water and sewage concessionaire Aegea Saneamento has entered an agreement to acquire 100% of Ciclus Ambiental S.A. and its subsidiary Ciclus Rio from Simpar S.A. and its affiliate CS Brasil Holding. The deal, valued at BRL 1.9bn (USD 370mn ) in enterprise value, includes an equity value of BRL 1.1bn (USD 203mn) and the assumption of BRL 804mn in net debt.

The purchase will be settled through a structured payment plan: BRL 800mn paid upfront, followed by two equal installments of BRL 150mn in April 2026 and April 2027, adjusted by Brazil’s CDI interbank rate.

The core of the acquisition is CTR Seropédica, Latin America’s largest bioenergy landfill, which is operated by Ciclus Rio. The facility processes around 10,000 tons of waste daily, generates biogas and biomethane, and plays a vital role in Brazil’s carbon credit ecosystem. More than 60% of Brazil’s biomethane from waste is sourced from this landfill alone. The company also holds long-term concession contracts with Rio de Janeiro’s municipal cleaning authority (COMLURB), valid until 2036, with possible extensions. In 2024, Ciclus also won the solid waste concession for Belém (Pará), underscoring its strategic national footprint.

For Aegea, this transaction is a natural extension of its strategy to evolve from a pure sanitation provider into a fully integrated environmental solutions platform, combining water, sewage, and solid waste services. It strengthens Aegea’s operations in Rio de Janeiro, where it already manages water and sewerage systems, unlocking important synergies. It also deepens Aegea’s presence in the fast-growing urban waste valorisation segment—an area with significant environmental and economic upside.

For Simpar, the divestment is in line with its broader portfolio strategy. CEO Fernando Simões explained that the sale supports Simpar’s plan to reduce holding company debt and focus on businesses with higher synergy potential. As Ciclus was an unlisted asset, it wasn’t fully reflected in the company’s valuation — selling it helps to unlock value for shareholders.

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