Global investment firm KKR and Ramky Enviro Engineers Limited (REEL) have announced the signing of a definitive agreement under which KKR will acquire a 60% stake in REEL for 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.