Pamela Barbaglia & Andres Gonzalez

MADRID (Reuters). EQT, a European buyout firm (NYSE:), is working with consultants to sell French water management company Saur. The deal would be worth approximately 3 billion euros (3.43 billion), according people familiar with this matter.

EQT has engaged Rothschild for the purpose of assessing interest in Saur’s 70% ownership, prior to an auction, which is scheduled to begin sometime later this year.

This person stated that the company already has attracted interest from Munich-based Reimann Investors, which works for Germany’s billionaire Reimann families.

The people stated that cash-rich investors in infrastructure are expected to also come forward to Saur, which services approximately 7,000 French authorities under long-term contracts. These contracts appeal to investors because they provide a steady cash flow and offer financial security.

Rothschild did not respond to a request for comment. Reimann Investors and EQT did not immediately respond to a request.

This move is coming as French water and waste management companies Veolia, and Suez are in final stages of a tie up that will create a national champion.

According to the Organisation for Economic Cooperation and Development, (OECD), water management represents a huge business opportunity for infrastructure funds. EU countries spend an average of 100 billion euros annually on water supply and sanitation.

Saur, who is now part of EQT’s ownership, has made investments in international growth through recent acquisitions in Portugal (and the Netherlands)

Spanish media were also informed by Patrick Blethon, Chief Executive of the company, that it is present in Spain. Gestagua was suggested as a potential platform for accessing South American markets.

EQT (which took control over Saur in 2018) is seeking to cash out at around 3 billion euros. They will target a variety of investors and potential buyers.

Saur refinanced its debt in September when it issued sustainability-linked bonds worth 950 million euros and secured a senior revolving credit facility of 250 million euros.

($1 = 0.8763 euros)