HONG KONG (Reuters) - Private equity firm KKR & Co KKR.N said it will acquire a 60 percent stake in India's Ramky Enviro Engineers Ltd (REEL) for $530 million, adding it was one of India's largest buyouts.
KKR will buy the stake via a combination of primary and secondary investments, in a deal that gives the waste management company an enterprise value of $925 million.
The deal comes at a time when the country is focused on reducing pollution and improving sanitation infrastructure via its Swachh Bharat (Clean India) Mission - an initiative launched by Prime Minister Narendra Modi.
The main aim is to eliminate open defecation by October 2019 by building individual and public toilets.
KKR India’s CEO Sanjay Nayar said REEL is the only comprehensive environmental management company offering end-to-end services across India and that its work uniquely supports the Swachh Bharat Mission.
REEL also recycles paper, plastic and chemicals and focuses on renewable energy generation using waste. It operates 14 hazardous waste management facilities, 15 biomedical waste disposal facilities and over 28 municipal solid waste management facilities in India well as businesses in Southeast Asia, Middle East and Africa.
Reporting by Kane Wu; Editing by Edwina Gibbs
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