KKR closes $510m equity investment in Ramky Enviro Engineers

Global investment company KKR has completed its previously announced $510 million acquisition of a 60% stake in Indian environmental services provider Ramky Enviro Engineers (REEL).

The deal, which was announced in August 2018, was executed through a combination of primary and secondary investments. The equity investment from KKR through its KKR Asian Fund III, gives an enterprise value of $925 million to Ramky Enviro Engineers.

The Indian environment management services provider is involved in waste management, collection, and transportation and processing of biomedical, hazardous, municipal and e-waste in India and overseas. It is also engaged in recycling of paper, plastic and chemicals, and in renewable energy generation, especially on waste-to-energy processes.

Based in Hyderabad, the environmental services provider operates waste treatment plants across 60 plus locations with a footprint in 20 Indian states in addition to operations Singapore, Africa and the Middle East.

KKR completes $510m equity investment in Ramky Enviro Engineers. Image courtesy of xedos4 at FreeDigitalPhotos.net.

M. Goutham Reddy – Managing Director & CEO of Ramky Enviro Engineers, said: “India is home to some of the world’s most pressing waste management needs, and REEL has an important role to play in providing critical solutions to communities across the country.

“KKR’s expertise in environmental issue management, extensive global and local resources, and aligned vision to enact positive change makes KKR the ideal partner to help us keep pace with the environmental challenges facing our society and provide impactful solutions. We are off to a great start with multiple strong hires added to the management team and process enhancements work to better our ESG efforts.”

The investment of KKR in Ramky Enviro Engineers is part of its Global Impact strategy, which aims at identifying and investing in businesses that can create positive social or environmental impact that contribute solutions measurably to one or more of the United Nations Sustainable Development Goals.

Rupen Jhaveri – Managing Director at KKR said: “Supporting promising companies that offer solutions to global challenges in areas such as the environment, health and human capital has become an increasingly important focus for KKR worldwide.

“REEL is exemplary in being a comprehensive environmental management company whose work supports the Swachh Bharat (Clean India) Mission to reduce pollution and improve critical sanitation infrastructure nationwide. We are confident that, with our industry experience and resources, REEL will be better positioned to achieve its social mission over the long term.”