KKR to buy 60% stake in environmental services provider Ramky Enviro

Global investment firm KKR has agreed to acquire a stake of 60% in Indian environmental services provider Ramky Enviro Engineers (REEL) from Ramky Group for about $530 million.

The transaction to be done through a mix of primary and secondary investments values Ramky Enviro Engineers at an enterprise value of $925 million.

The Indian environment management services provider is engaged in waste management, collection, and transportation and processing of hazardous, municipal, biomedical and e-waste. It is also involved in recycling of paper, chemicals and plastic.

Ramky Enviro Engineers also focuses on renewable energy generation, particularly on waste-to-energy processes.

Commenting on KKR investment in the environment management services provider, M. Goutham Reddy – Managing Director & CEO of Ramky Enviro Engineers, said: “REEL was founded by Mr. A. Ayodhya Rami Reddy with a vision that sustainable development is the key to success and with an objective of serving society through environmental 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.”

Ramky Enviro Engineers boasts of offering cost-effective, customized solutions to a range of complex environmental needs across areas including integrated waste management, water and wastewater treatment and remediation, and others.

Headquartered in Hyderabad, the environmental services provider operates waste treatment plants in more than 60 locations with presence in 20 Indian states, and also outside India in Singapore, Africa and the Middle East.

Sanjay Nayar – Member & CEO of KKR India, commenting on KKR investment in Ramky Enviro Engineers, said: “We are excited to partner with REEL, the only comprehensive environmental management company offering end-to-end environmental and waste management services across India.

“REEL’s work uniquely supports the Swachh Bharat Mission, and our team is pleased to invest in the growth of a company that provides critical services and infrastructure to reduce pollution and address the needs of India’s expanding urban population.”

Following the announcement of KKR’s equity investment in Ramky Enviro Engineers, the environmental services provider said that it plans to invest around Rs 2,500 crore ($360 million) in the next two to three years for expansion and for new projects, reported The Hindu Business Line.