The garbage king of St. Petersburg. Matvienko's son returns to big business
Since 2011, when the mother left the post of the St. Petersburg Governor, Sergey Matvienko only sold off his assets, and his 5-billion fortune was rapidly dwindling. The purchase of Avtopark (Fleet) No. 7 Spetstrans means a return to big business.
Son of the Federation Council Speaker Sergey Matvienko became the owner of 99.8% of the St. Petersburg largest street-cleaning operator Avtopark No. 7 Spetstrans JSC.
To do this, the entrepreneur bought 100% of Backbon LLC, which owned the operator since 2014. The cost of Avtopark No. 7 Spetstrans, is estimated in the range of 750 million - 1 billion rubles ($13.1m – 17.5m).
According to the Peterburgskaya Gazeta, Matvienko bought the street-cleaning operator in December 2016, immediately after obtaining a license for work with runoff. The acquisition was made in anticipation of the projected growth of the St. Petersburg garbage market in 2017 after the introduction of the utilization charge, the edition notes.
Avtopark Spetstrans-7 specializes in cleaning city streets (the annual volume of this market in St. Petersburg is 6-7 billion rubles ~ $105.6m). The Avtopark is called the largest private St. Petersburg operator in the field of cleaning, competing with SUEs (state unitary enterprises), which does not prevent Spetstrans-7 from occasionally obtaining subcontracts from them. So, according to the edition, last year Spetstrans-7 received 467.5 million rubles ($8.1m) from the state contracts, and in 2015 - 1.2 billion ($22m). Also, in addition to executing state orders for cleaning, the company also transports cargo, rents out special equipment and property.
According to the Spetstrans-7 articles of association, the company has a license to collect, transport, process, dispose and detoxify wastes of I-IV hazard classes since December 1, 2016. It is noteworthy that the licensing application coincided with the preparation of the St. Petersburg Government’s tender for the selection of a single regional operator (EPO) for waste management. And although, according to the newspaper, there are about 300 such licenses in St. Petersburg today, only several operators have real opportunities to become an EPO, among them Spetstrans-7 is.
As Peterburgskaya Gazeta notes, Avtopark No. 7 Spetstrans JSC is the first major acquisition of the entrepreneur from since his mother Valentina Matvienko left the post of Governor in 2011.
According to the edition, this transaction could be regarded as the return of Sergey Matvienko to big business, because since 2011, when the mother left the post of the St. Petersburg Governor, Sergey Matvienko only sold off his assets, and his fortune was rapidly dwindling.
According to the rating of the Finance magazine from 2011, Sergey Matvienko ranked Top-500 Russian billionaires with a capital of 4.9 billion rubles ($85.9m). The companies owned by Sergey Matvienko were engaged in construction, cleaning, media, transport and trade.
However, as The CrimeRussia previously reported, after the resignation of Valentina Matvienko from the post of Governor, the company of her son Imperiya Farma (Empire of Pharma) got into debt in 2012, taking 5 billion rubles ($87.6m) credits. The restructuring of the Imperiya Farma business in 2015 did not help, and in June it was declared bankrupt. Another company of Sergey Matvienko, Vavilon (Babylon), owed Lenenergo 60 million rubles ($1m).