(Bloomberg) — KKR & Co. is exploring options for Viridor Ltd., including a potential sale that could value the UK waste management firm at as much as £7 billion ($8.5 billion) including debt, people familiar with the matter said.
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The private equity firm has been speaking to potential advisers about the planned divestment, according to the people, who asked not to be identified as the information is private. A sale process could start later this year, they said.
Viridor generates about £400 million in annual earnings before interest, taxes, depreciation and amortization, one of the people said. Considerations are at an early stage and KKR could still decide to keep the asset for longer, the people said.
A representative for KKR declined to comment.
Any transaction would add to the roughly $340 billion in divestments by private equity firms over the past 12 months, according to data compiled by Bloomberg. The waste management industry is seeing a flurry of deals as investors hunt for stable businesses and green assets.
Apollo Global Management Inc. and BC Partners this week agreed to acquire a controlling stake in GFL Environment Inc.’s environmental services unit, in a deal that values the business at C$8 billion ($5.6 billion) including debt. Macquarie Asset Management is pursuing a potential £701 million acquisition of London-listed waste management company Renewi Plc.
Investment firm Platinum Equity is considering a potential sale of Urbaser SA in a deal that could value the Spanish waste-management company at €6 billion ($6.2 billion) or more including debt, Bloomberg News reported last April.
Ardley, England-based Viridor operates energy recovery facilities across the UK that generate energy from residual waste, according to its website. It also recycles plastics and took full ownership of Quantafuel AS last year.
In 2020, KKR acquired Viridor from Pennon Group Plc for £4.2 billion including debt, which was among the biggest UK deals at that time since the outbreak of the Covid-19 pandemic. KKR managed $624 billion of assets globally as of the end of September.
–With assistance from Vinicy Chan.
(Updates with private equity deal volume in fifth paragraph.)
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