Pennon Group has agreed to sell Viridor Ltd. a recycling and residual waste business in the United Kingdom, to Planets UK Bidco, a newly formed company established by funds advised by Kohlberg Kravis Roberts & Co.
The asset has an enterprise value of £4.2 billion ($4.9 billion) on a cash-free, debt-free basis.
Net cash proceeds are expected to be approximately £3.7 billion ($4.3 billion) at completion, after taking into account debt and debt-like items that will remain with Viridor, and customary costs.
The transaction was unanimously agreed by the Pennon board to be in the best interests of shareholders.
“The transaction is great news for shareholders as it recognizes the strategic value that Pennon has developed and nurtured in Viridor over many years and accelerates the realization of that value for shareholders,” said Chris Loughlin, chief executive of Pennon. “On completion of the transaction, Pennon will continue to focus on its sector-l
