Other Private Equity/Strategic Investments
I Squared, TPG-CPPIB consortium nears bid for waste mgmt player Re Sustainability
I Squared Capital and a consortium comprising TPG and the Canada Pension Plan Investment Board (CPPIB) are in the final stages of submitting bids to acquire a controlling stake in the KKR-backed, Hyderabad-based company, Re Sustainability (formerly Ramky Enviro Engineers). Other private equity firms, including Bain Capital and Advent, were previously evaluating the asset but have withdrawn from the process.Founded in 1994 by Alla Ayodhya Rami Reddy, Re Sustainability provides waste management services, including municipal solid waste, industrial waste, biomedical waste, and e-waste management, as well as recycling and waste-to-energy projects. The company plans to leverage its industrial waste management segment, which accounts for nearly 80% of its FY25 EBITDA, to support continued revenue growth.KKR had acquired a 60% stake in the company for USD 530 million in 2018. In preparation for this exit, the firm separated the company's municipal and industrial waste businesses, with founders assuming control of the municipal segment. Barclays and JP Morgan were engaged as advisors to facilitate the sale of the remaining industrial waste business.
Between May 2009 and Aug 2018, Re Sustainability had attracted about $ 550 million from KKR, IIML, SCI Asia.For FY25, Re Sustainability had reported about INR 498 crore in Operating Income and about INR 62 crore in PAT.
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