EQT Infrastructure II acquires Synagro Technologies, the leading organic residuals management provider in the US

• EQT Infrastructure II closed the USD 465 million enterprise value acquisition of Synagro Technologies, Inc.

• Company’s debt reduced by approximately USD 200 million

• Tapping into resources from EQT’s diverse Industrial Network, the management team aims to accelerate Company growth

The acquisition of Synagro Technologies, Inc. (“Synagro” or the “Company”) by EQT Infrastructure II completes the refinancing of the Company under a comprehensive Plan of Reorganization approved by the Court with the full support of the Company’s creditors via the Chapter 11 process. Through working constructively with its creditors and backed by EQT Infrastructure II, Synagro’s balance sheet has been completely restructured, including an approximate USD 200 million reduction in outstanding debt. The new capital structure leaves Synagro with ample operational flexibility to execute on attractive growth opportunities.

“The new balance sheet and support from EQT’s Industrial Network will enable Synagro to capitalize on a variety of significant market opportunities,” said Eric Zimmer, Synagro’s President and CEO. “We are excited to have the full support of EQT as we work to execute our plan to continue and accelerate our strategic growth and increase the valuable solutions we deliver for our existing and new customers across the country.”

Execution of the new growth plans is already underway. This week Synagro announced the construction of a new bio-recycling center in Charlotte County, Florida. The state-of-the-art facility, which will go commercial in early 2014, will safely and efficiently provide for the recycling of up to 50,000 wet tons of biosolids using energy efficient technologies that convert the material to a valuable nutrient rich product. The facility will be capable of producing up to 75,000 cubic yards of Class AA compost for use in the local agriculture and landscaping market, creating a sustainable closed-loop process that returns the organic nutrients back to the soil.

“High quality treatment and recycling of biosolids protects human health and the environment and Synagro is the U.S. market leader,” says Glen T. Matsumoto, Partner at EQT Partners, investment advisor to EQT Infrastructure II. “We believe there are abundant opportunities to help Synagro grow its core business by finding additional ways to serve its customers and grow further into new U.S. markets. We look forward to working with Synagro’s management to build an exciting future for the Company.”

“Having had the opportunity to get to know the Synagro management team over the past several months, I am convinced that Synagro has an exciting future and I’m delighted to be a part of it,” says Geoffrey Roberts, new Chairman of the Board of Synagro and Industrial Advisor to EQT. “The public and industrial wastewater industry has ever increasing demands for the specialized types of services and the proven expertise and capabilities that Synagro uniquely provides to its clients day in and day out. The new Board and the extended EQT Industrial Network is committed to provide the support and resources necessary to ensure that this future is about innovation, first-class customer service and growth.”

EQT Infrastructure II was advised by the law firm of Weil Gotshal & Manges and financial advisor RBC Capital Markets.

Contacts:
Glen T. Matsumoto +1 917 281 o838 4502
Partner at EQT Partners, investment advisor to EQT Infrastructure II

EQT Press Department +46 8 506 55 334

Jamie Kinder +1 443 489 9016
Director of Communications, Synagro
jkinder@synagro.com

About EQT
EQT is the leading private equity group in Northern Europe with approximately EUR 20 billion in raised capital, portfolio companies with total sales of more than EUR 25 billion and over 550,000 employees.

The funds’ investment philosophy is to help acquired companies grow and develop into great and sustainable companies, both under EQT’s ownership and with future owners.

The result so far: EQT owned companies have on average increased the number of employees by 11%, sales by 11% and earnings by 15% annually during the EQT funds’ ownership. Almost all of the return on investments is attributed to operational improvements such as increased sales and efficiency gains.

EQT Infrastructure II at approximately EUR 1.9 billion is the second fund within the infrastructure investment strategy. The first fund closed in 2008 at approximately EUR 1.2 billion. EQT Infrastructure II seeks to invest in medium-sized infrastructure companies with a significant opportunity for value creation through accelerating growth and implementing operational improvements. Potential investment targets are basic infrastructure, concession-based infrastructure and infrastructure-related services.]

More information can be found on www.eqt.se

About Synagro
Founded in 1986 and headquartered in Baltimore, Maryland, Synagro provides a system of solutions for civic and commercial organizations that manages by-products to create new, environmentally compelling options. The Company’s reliable, lasting system transforms industrial and municipal waste into environmentally sustainable resources that benefit our communities and our planet - before an environmental footprint is left behind. As the largest recycler of organic by-products in the United States, Synagro uses best-in-class processes from beneficial reuse to renewable energy that adhere to the strictest of environmental regulations to provide sustainable solutions for communities across the nation. Serving more than 600 municipal and industrial water and wastewater facilities throughout the U.S., the Company’s leading systems of by-product management services help municipalities of all sizes save money and meet environmental regulations.

More information can be found on www.synagro.com