Water and waste management company Pennon Group (Exeter / UK; www.pennon-group.co.uk
) has announced the proposed sale of recycling and waste collection operation Viridor (Taunton / UK; www.viridor.co.uk
) for an estimated GBP 4.2 bn (EUR 4.53 bn). Pennon, which owns UK water company South West Water, has agreed to sell Viridor to Planets UK Bidco, a company set up and owned by US private equity giant Kohlberg Kravis Roberts (KKR, New York, New York; www.kkr.com
). The UK group said the deal, if approved by shareholders and takeover authorities, would complete this summer.
The decision to sell followed a strategic review by Pennon into its activities. Viridor then called Haul Waste was bought by Pennon in 1993 for GBP 28m and later renamed Viridor Waste Management. Pennons chief executive, Chris Loughlin, said the transaction was great news for shareholders, as it recognises the strategic value that Pennon has developed and nurtured in Viridor over many years and accelerates the realisation of that value for shareholders. He added that once the transaction is completed, 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.
In 2019, Pennon Group reported turnover of GBP 1.7 bn and pre-tax profit of GBP 260.3m. Its UK waste management operation generated revenues of GBP 656m.