KKR agrees GBP 4.2bn Viridor purchase

18 March 2020 - 12:00 am UTC

Pennon Group has agreed to sell UK waste management and energy company Viridor to an affiliate of Kohlberg Kravis Roberts & Co. for an enterprise value of GBP 4.2bn, it announced on Wednesday (18 March).

The KKR vehicle, Planets UK Bidco Ltd, is buying Viridor on a cash-free, debt-free basis for an EV/EBITDA multiple of 18.5x, Pennon said.

The announcement of the sale comes just a week after UK-listed water utility Pennon Group, took non-binding offers from suitors thought to include a joint venture between Canada Pension Plan Investment Board and I Squared Capital; Macquarie Infrastructure & Real Assets (MIRA); GIC; Cheung Kong Infrastructure Holdings; IFM Investors; Equitix and Dalmore.  

KKR Infrastructure, which is being advised by RBC and UBS, submitted a pre-emptive GBP 4bn bid for Viridor last year, the Sunday Telegraph previously reported.

Pennon Group tapped Morgan Stanley and Barclays to advise on the sale of Viridor in October 2019, with industry observers valuing the business between GBP 3.5-5bn.

The advisors began distributing IMs for the sale, code-named Project Planets, last month. 

Viridor owns 10 operational EfW plants in the UK, which it operates on behalf of local authorities under PPP contracts including Ardley, Beddington, Cardiff, Dunbar, Exeter, Glasgow, Slough, Peterborough and Runcorn.

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