Viridor acquired by KKR for £4.2 billion
Viridor announced its plans to continue investment in crucial UK recycling and energy recovery infrastructure, following the successful completion of KKR’s £4.2 billion acquisition of the business yesterday (8 July).
In March, Pennon Group announced its plans to sell Viridor to Planets UK Bidco Limited, a newly formed company set up with funds advised by KKR.
Phil Piddington, who has been Viridor’s Managing Director since 2016, will assume the role of Chief Executive Officer. Viridor also announced the appointment of Ian Wakelin, the former Chief Executive Officer of Biffa, as Chairman of the company.
KKR’s Head of European Infrastructure Tara Courtney Davies, said: “We see enormous potential for Viridor as a standalone business. The company is already a sector leader with a strong platform and an experienced management team. With KKR’s support, Viridor is uniquely positioned to invest further and continue to build critical infrastructure, helping the UK meet long-term sustainability and environmental goals.”
Wakelin added: “Viridor is clearly well-positioned to continue to deliver excellent growth and this is enhanced by the investment from KKR, a group which values infrastructure development.
“Viridor has a clear strategy based on market demand and a real understanding of the challenges and opportunities in this sector based on years of experience. I look forward to working with the Viridor management team over the coming years to deliver their vision for the company.”
Piddington stated that Viridor would continue to advance its plans for future growth with infrastructure investments backed by long-term contracts.
He said: “We are exploring options for three more energy recovery facilities, including a new plant at Ford in West Sussex, another joint venture with Grundon Waste Management. This supports market demand for landfill-diversion facilities which produce low carbon heat and power and contribute to UK resource and energy efficiency.
“As a complete waste and resource management company working across the UK, we are keenly aware of exactly where the capacity gap exists. We are confident that we are best placed to deliver the environmental ambitions of the UK and its devolved administrations, especially where these focus on green recovery, jobs, innovation and infrastructure.”
Pennon Group, meanwhile, said it was “pleased” to have completed the sale of Viridor for cash proceeds of £3.7 billion, and will now focus on its water and wastewater businesses.