KKR to purchase Viridor from Pennon Group

KKR to purchase Viridor from Pennon Group
<![CDATA[

Pennon Group Plc, Exeter, U.K., has announced that it has entered into an agreement to sell Viridor Ltd., one of the U.K.’s leading recycling and residual waste businesses, to Planets UK Bidco Ltd., a newly formed company established by funds advised by Kohlberg Kravis Roberts & Co. LP (KKR), for 4.2 billion pounds sterling, or $4.8 billion.

Viridor works with more than 150 local authority and major corporate clients across the U.K. and operates more than 300 advanced recycling, energy recovery and landfill diversion facilities and provides waste collection services using more than 600 vehicles.

According to Viridor’s website, it manages 7 million metric tons of recyclables and resources each year and trades 1.4 million metric tons of recyclables. Viridor also operates energy recovery facilities (ERFs).

According to Pennon, the transaction represents an enterprise value/earnings before interest, taxes, depreciate and amortization (EV/EBITDA) multiple of 18.5 times. It also recognizes the strategic value of Viridor’s diversified and complementary U.K. recycling and residual waste management platform and expected growth opportunities.

Net cash proceeds from the transaction are expected to be approximately 3.7 billion pounds sterling, or $4.2 billion, at completion, the company says, after taking into account debt and debt-like items that will remain with Viridor and customary costs. An additional consideration of up to 0.2 billion pounds sterling is contingent on future events and outcomes  

The Pennon board intends to use the net cash proceeds to reduce the company’s borrowings and make a return to shareholders whilst retaining some funds for future opportunities, according to the company.  

The transaction is conditional on approval from Pennon shareholders, merger control clearance from the European Commission and certain other conditions. Pennon says the sale is expected to complete in summer 2020.

The Pennon board unanimously agreed that the sale would be in the best interests of shareholders.

Chris Loughlin, Pennon chief executive, says, “Following a detailed review of the group’s strategic options, we are pleased to announce the proposed sale of Viridor for an enterprise value of 4.2 billion pounds. The transaction is great news for shareholders as it recognizes the strategic value that Pennon has developed and nurtured in Viridor over many years and accelerates the realization of that value for shareholders. On completion of the transaction, Pennon will continue to focus on its sector-leading water and wastewater businesses and will consider further growth opportunities that create value for customers, employees and shareholders."

New York City-based KKR KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic partners that manage hedge funds.

]]>
Source: Recycling Today
KKR to purchase Viridor from Pennon Group
<![CDATA[Pennon Group Plc, Exeter, U.K., has announced that it has entered into an agreement to sell Viridor Ltd., one of the U.K.’s leading recycling and residual waste businesses, to Planets UK Bidco Ltd., a newly formed company established by funds advised by Kohlberg Kravis Roberts & Co. LP (KKR), for 4.2 billion pounds sterling, or $4.8 billion.Viridor works with more than 150 local authority and major corporate clients across the U.K. and operates more than 300 advanced recycling, energy recovery and landfill diversion facilities and provides waste collection services using more than 600 vehicles.According to Viridor’s website, it manages 7 million metric tons of recyclables and resources each year and trades 1.4 million metric tons of recyclables. Viridor also operates energy recovery facilities (ERFs). According to Pennon, the transaction represents an enterprise value/earnings before interest, taxes, depreciate and amortization (EV/EBITDA) multiple of 18.5 times. It also recognizes the strategic value of Viridor’s diversified and complementary U.K. recycling and residual waste management platform and expected growth opportunities.Net cash proceeds from the transaction are expected to be approximately 3.7 billion pounds sterling, or $4.2 billion, at completion, the company says, after taking into account debt and debt-like items that will remain with…