Blackstone is acquiring European environmental service company DESOTEC through its private equity funds. DESOTEC is focused on mobile purification solutions based on activated carbon technology.
Blackstone’s (BX) Senior Managing Director, Jürgen Pinker said, “We are proud to invest in an innovative, mission-driven environmental leader like DESOTEC. The company is a perfect fit for our core private equity strategy, which seeks to identify exceptionally high-quality businesses with strong tailwinds at their backs and support them for the long term.”
Mario Hertegonne, CEO of DESOTEC said, “Today’s investment marks the beginning of a new chapter for DESOTEC as we continue our mission to better protect the planet. Together with Blackstone, we plan to accelerate our pan-European growth strategy and further expand our leading market position.”
DESOTEC has a fleet of 2,700 mobile filters in Europe. Its industrial uses include air emission, biogas, remediation, wastewater, and chemicals. The company offers a closed loop, “Filtration as a service” rental solution which allows its customers to comply with environmental and sustainability requirements. (See Blackstone stock analysis on TipRanks)
On March 18, Oppenheimer analyst Christopher Kotowski downgraded the stock to Hold from Buy as it surpassed his previous price target of $71. He did not assign a price target. Kotowski said, “We continue to view the company as a solid growth story and appropriate for long-term growth-oriented investors not sensitive to valuation.”
Turning to rest of the Street, the stock has a Moderate Buy consensus rating alongside an average analyst price target of $72.40 based on 7 Buys and 4 Holds. Shares have rallied about 79.2% over the past year.
Blackstone scores a “perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock may outperform the broader market.
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