Blackstone and EQT AB said Thursday that they will buy Spanish recycling company Urbaser from Platinum Equity LLC for $6.6 billion as they seek to cash in on the growing industrial waste management sector.

The private equity firms said that their infrastructure funds have agreed to acquire Urbaser, which provides waste management and recycling services.

EQT of Sweden and U.S. firm Blackstone will each own 50% of Urbaser and jointly manage the company once the deal closes. Platinum Equity said it will retain Urbaser's waste management business in Argentina.

Simpson Thacher & Bartlett LLP, Linklaters LLP and Kirkland & Ellis LLP are acting as legal advisers to Blackstone and EQT. They are joined by Spanish law firm Uría Menéndez.

Latham & Watkins LLP is providing counsel to Platinum Equity, led by partner Ignacio Pallarés, with counsels Luis Manuel Lozano and Carmen Esteban. Associates Marino Aineto and Pablo Campanillas are also part of the Latham team.

Urbaser, which is based in Madrid, collects and treats rubbish from more than 60 million people across 15 countries. The company also develops sustainable energy from waste.

The company has 150 treatment plants managed by 42,000 employees.

EQT and Blackstone said that they will use their experience of investing in sustainable waste management and infrastructure companies to expand Urbaser. The private equity firms said that they will support Urbaser's management team to expand in the sector.

Guillermo García-Barrero, partner at EQT Infrastructure, said that "we look forward to supporting Urbaser's management team and employees to continue to invest in the circular economy and create lasting value for society."

Platinum Equity acquired Urbaser in October 2021 for approximately $4.2 billion from China Tianying Inc.

The Uría Menéndez team advising Blackstone and EQT includes partners Blanca Arlabán, Manuel Echenique and José Alberto Navarro.

Morgan Stanley & Co. International PLC and Banco Bilbao Vizcaya Argentaria SA acted as financial advisers to EQT. JP Morgan and UBS Investment Bank guided Blackstone on financial matters.

Citi and Santander are acting as financial advisers to Platinum Equity.