Keppel buys Singapore waste management player 800 Super
Keppel Corporation has purchased a majority interest in Singapore waste management services business 800 Super Holdings, which was delisted in 2019 through a KKR-backed take-private, at a valuation of SGD 380m (USD 273m).
The acquisition involves two entities: Keppel Asia Infrastructure Fund (KAIF), which is operated by Keppel Capital, the asset management arm of Keppel Corporation; and Keppel Infrastructure, a wholly owned subsidiary of the Singapore-based multinational. They will hold interests of 48% and 32%, respectively.
Willian Lee, 800 Super’s founder and CEO, currently holds a 20% stake. He will reinvest most of his sale proceeds in the business, subscribing to an indirect interest of 20%, according to a filing.
KKR supported the delisting through a combination of debt and structured equity financing primarily from a private credit fund. Lee Koh Yong – who was then 800 Super’s executive chairman and controlled 77.6% of the company alongside several of his siblings – led the SGD 161m take-private. KKR’s financing package included 22.2 million convertible preference shares, which equated to a 12.4% stake.
KKR was one of several GPs approached by Lee and his family about supporting a take-private. On closer inspection, it concluded that structured mezzanine financing would be more cost-efficient, and the family agreed. KKR claimed to be the only private equity firm to deliver a debt proposition.
Speaking to AVCJ last year, Brian Dillard, head of Asia credit at KKR, offered 800 Super as an example of the firm’s flexibility. “Having the ability to approach a company about a buyout or a minority investment and then flip the script based on what they are trying to accomplish, that is a very natural thing for KKR. We have many different pools of capital,” he said.
Founded in 1986, 800 Super is one of three licensed public waste collectors in Singapore, providing municipal waste collection services. The company also provides waste removal and recycling services for commercial and industrial customers.
800 Super owns and operates an integrated waste treatment plant that can treat 568 tonnes of controlled waste per day, and a 2.88 MW biomass co-generation plant. It also owns and operates Singapore’s largest biomass fuel preparation facility, which is capable of processing 400 tonnes per day of processed horticulture and wood waste into compost and biomass feedstock.
The company’s other environmental services include integrated public cleaning. It is one of four groups contracted to clean public roads and other public areas, and it also provides cleaning, gardening, and landscaping services to commercial and industrial customers.
Keppel Corporation, which focuses on sustainable urbanisation across energy and the environment, urban development, connectivity, and asset management, sees 800 Super as a good strategic fit. It plans to help the company increase latent capacity in waste treatment to meet rising demand.
“The acquisition of a strategic interest in 800 Super complements and broadens the range of environmental services that Keppel Infrastructure offers. It will also create opportunities to synergise operations and enhance competitive advantages of the two companies,” said Cindy Lin, CEO of Keppel Infrastructure.
“As demand for environmental services continues to rise in Singapore and the region, we look forward to working closely with the management of 800 Super to pursue more opportunities by leveraging our technological differentiators, deep technical know-how and operating performance track records.”
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