EconomyEditor's PickNewsKKR’s Viridor to start sale of recycling unit: sources

2 years ago305 min
imageStock Markets20 minutes ago (Oct 01, 2020 08:10AM ET)

(C) Reuters. FILE PHOTO: Logo of Swiss bank UBS is seen in Zurich

By Clara Denina and Arno Schuetze

LONDON/FRANKFURT (Reuters) – Viridor, the British waste management business owned by U.S. private equity firm KKR, has hired investment bank UBS to sell its waste and recycling subsidiary, two sources told Reuters.

Viridor, bought by KKR from British water utility Pennon (L:PNN) for 4.2 billion pounds ($5.4 billion) in March, is looking to simplify its portfolio and will sound out market interest in the next few weeks, the sources said.

The recycling unit has an EBITDA (earnings before interest, taxes, depreciation and amortization) of about 75 million pounds, they added.

Viridor and Swiss bank UBS declined to comment.

KKR did not immediately respond to a request for comment.

As public pressure mounts to pare back on global waste, including the plastic packaging clogging landfills and oceans, companies around the world have committed to improve recycling and reduce their carbon emissions, boosting their credentials with investors and the general public.

Viridor’s waste and recycling subsidiary could attract the interest of private equity and infrastructure funds keen to capitalise on the steady returns from a business that often works with underlying contracts, which are consistently renewed.

Macquarie Infrastructure Partners has separately launched the sale of waste management company Wheelabrator’s power plants in the United Kingdom, with initial bids expected in coming days, sources told Reuters in August.

($1 = 0.7726 pounds)

KKR’s Viridor to start sale of recycling unit: sources

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Leave a Reply

Your email address will not be published. Required fields are marked *