KKR has entered into a definitive agreement to acquire 60 percent stake in Ramky Enviro Engineers Ltd.
The global investment firm will pay approximately $530 million for the stake, via a combination of primary and secondary investments, valuing REEL at $925 million, making it the largest private equity deal in the Indian environmental services space, according to a press statement. The investment is being made via KKR's Asian Fund III.
“We are excited to partner with REEL, the only comprehensive environmental management company offering end-to-end environmental and waste management services across India”, said Sanjay Nayar, Member and Chief Executive Officer of KKR India.
REEL deals with waste management, offering services like 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 has a consulting and integrated environmental services arm. REEL operates across 20 states in the country and has a presence in the Southeast Asian, Middle Eastern and African markets as well.
The Indian government's been increasing its spending on one of its flagship programmes - the Swachh Bharat Mission, prompting various entrepreneurs to venture into waste management.
“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”, said Goutham Reddy, Managing Director and CEO of REEL.
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