KKR to buy majority stake in India's REEL for $530m

The deal represents the first private equity buyout in India's environmental services sector, and comes as the government seeks to promote environmental management through the Swachh Bharat initiative to reduce pollution and improve sanitation infrastructure. Exiting shareholders have not been identified, though reports in Indian media indicate Standard Chartered Private Equity (SCPE) and IL&FS Investment Managers (IIML) may be among them.

REEL was set up in 1994 as part of the Ramky Group and provides comprehensive environmental and waste management solutions in India, Singapore, the Middle East, and Africa. Its services include municipal, industrial, and healthcare waste disposal, along with water treatment.

SCPE and IIML invested $42.8 million in REEL in 2009, taking a stake of less than 5%. The company had planned to raise $200 million through an IPO in 2013, but called it off due to market volatility.

KKR is investing from its third pan-Asian fund, which closed last year at $9.3 billion. The firm's control investments in India include financial services firm Avendus Capital, in which it acquired a 70% stake for an undisclosed sum in 2015.

"We look forward to leveraging our resources to enhance REEL's operational best practices and add value by focusing on engineering innovation, attracting managerial talent and boosting efficiency," said Rupen Jhaveri, managing director at KKR. "We will work alongside REEL's experienced management team to enhance the company's mission of becoming a world-class leader in environmental management at a time when implementing sustainable solutions is more important than ever."

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• Topics
• South Asia
• Infrastructure
• Buyouts
• India
• KKR
• Standard Chartered Private Equity
• IL&FS Investment Managers