KKR Weighs Indian Waste Collection Firm Stake Sale
KKR is considering a sale of its controlling stake in Ramky Enviro Engineers, according to people familiar with the matter
(Bloomberg) -- KKR & Co. is considering a sale of its controlling stake in Ramky Enviro Engineers Ltd. a year after it completed the purchase of the Indian environmental services provider, according to people familiar with the matter.
The buyout firm has held initial talks with prospective suitors including a Chinese company, the people said, who asked not to be identified as the discussions are private.
KKR completed acquiring a 60% stake of Ramky Enviro for about $510 million in Feb. 2019, according to a statement at that time. The investment was part of the private equity firm’s impact investing strategy, which refers to identifying businesses with positive social or environmental impact. Ramky Enviro Founder Ayodhya Rami Reddy holds the remaining 40%.
Ramky Enviro offers solutions to a variety of environmental needs across areas including industrial, municipal and medical waste management, wastewater treatment and recycling, according to its website. It manages about 6 million tons of municipal solid waste a year in 21 cities across India and also operates in countries such as Singapore, Qatar, Saudi Arabia and Tanzania. The company counts Colgate-Palmolive Co., Mahindra & Mahindra Ltd. and Bayer AG among its clients.
Sale considerations are at an early stage and KKR could decide to keep its stake, the people said. Representatives for KKR and Ramky Enviro declined to comment.
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