KKR completes acquisition of 60% stake in India’s Ramky Enviro for $510m

Photo: Reuters

Private equity giant KKR has completed the acquisition of a 60 per cent stake in Indian environmental services and solutions provider Ramky Enviro Engineers for around $510 million.

In August last year, KKR had signed an agreement to acquire the stake through a combination of primary and secondary investments from its Asian Fund III. The deal is said to be the largest buyout by a private equity firm in India’s environmental services sector.

It was reported that KKR had bought the stake from the promoter family and existing investors of the Hyderabad-based firm including Standard Chartered IL&FS Asia Infrastructure Growth Fund and IL&FS PE that hold a combined 10 per cent stake.

“In addition to investing in REEL from its KKR Asian Fund III, the investment is part of KKR’s Global Impact strategy, which is focused on identifying and investing behind businesses with positive social or environmental impact that measurably contribute solutions to one or more of the United Nations Sustainable Development Goals,” said KKR in a statement.

Other PE funds such as Brookfield, CDC and Blackstone were reportedly also interested in picking up a stake in Ramky Enviro.

Hyderabad-based REEL’s offerings of environment management services include collection, transport and processing of hazardous, municipal, biomedical and e-waste, as well as recycling of paper, plastic and chemicals. It claims to operate waste treatment facilities in more than 60 locations across India, Singapore, the Middle East, and Africa.