India records US$530m deal
Global investment firm KKR will acquire a 60% stake in Ramky Enviro Engineers Limited (REEL), a leading provider of environmental services and solutions in India and overseas.
Both companies have signed a definitive agreement under which KKR will pay approximately US$530 million via a combination of primary and secondary investments valuing the Company at an enterprise value of US$925 million.
REEL’s suite of comprehensive offerings includes the management, collection, transport and processing of hazardous, municipal, biomedical and e-waste, as well as the recycling of paper, plastic and chemicals.
The company also focuses on renewable energy generation – with a strong focus on waste-to-energy processes – and offers consulting and integrated environmental services.
REEL has a presence in over 60 locations across 20 Indian states, as well as in certain Southeast Asian, Middle Eastern and African markets.
KKR’s investment in REEL marks one of the largest buyouts in India, in addition to being the first private equity buyout in the country’s highly attractive environmental services sector.
The deal comes as Prime Minister Narendra Modi’s administration enhances its focus on environmental management through the Swachh Bharat (Clean India) Mission, an initiative to reduce pollution and improve critical sanitation infrastructure to boost living standards in cities, towns and rural villages nationwide.
M. Goutham Reddy, Managing Director & CEO of the company, said, “With KKR as our new partner, we look forward to advancing our mission of responsibly addressing the environmental issues that emerging economies including India are facing today. Today marks the beginning of the next stage of REEL’s evolution towards serving society.”
Sanjay Nayar, Member & CEO of KKR India, said, “REEL’s work uniquely supports the Swachh Bharat Mission, and our team is pleased to invest in the growth of a company that provides critical services and infrastructure to reduce pollution and address the needs of India’s expanding urban population.”
REEL has established itself as a leading and trusted provider of environmental services due to its focus on sustainability and commitment to continuous improvement. fiinews.com
