Pennon to sell Viridor for £4.2bn

Viridor's Exeter Energy Recovery Facility (ERF)
has been operational since July 2014, treating
60,000 tonnes of residual waste a year.
19.03.2020 − 

British waste management company Viridor is to be sold for £4.2bn to investment funds managed by Kohlberg Kravis Roberts & Co. L.P. (KKR). Viridor's parent company Pennon announced on Wednesday that it had entered a sales agreement with Planets UK Bidco Limited, a company established by the KKR funds.

The £4.2bn figure was on a cash-free, debt-free basis, Pennon explained. Net cash proceeds were expected to stand at around £3.7bn at completion. The sale is still subject to a variety of approvals and must also be given the go-ahead by Pennon's shareholders.

In the financial year ended 31 March 2019, Viridor generated pre-tax profits of £88.5m on revenues of £853m. The company has a staff of around 3,000 employees and is active at more than 320 sites in England, Scotland and Wales. The company serves 150 local authorities and major corporate clients as well as around 32,000 other commercial customers. It operates numerous waste processing and treatment facilities including landfills and 16 materials recycling facilities (MRFs)

Viridor is one of Pennon's two core businesses, the other being the utility South West Water.

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