French utility Veolia to sell US waste management unit to Highstar Capital for $1.9 bn
19 Jul 2012
Veolia Environnement today said that it has agreed to sell its US waste management arm to infrastructure fund Highstar Capital for $1.9 billion, just weeks after the French utility sold its UK regulated water business to Rift Acquisitions Limited for $1.92 billion.
Veolia is selling Milwaukee, Wisconsin-based Veolia ES Solid Waste to Star Atlantic Waste Holdings, a portfolio company of Highstar Capital.
Highstar outbid Madison Dearborn Partners and Brazilian conglomerate Estre Ambiental SA, Bloomberg reported, citing people familiar with the matter.
In December 2011 Veolia had announced a €5-billion divestment programme over 2012-2013 in order to reduce its debt to below €12 billion from €15 billion.
The Paris-based company said that post closing of the transaction expected by the end of the year, it will achieve 60 per cent of the €5 billion asset divestment programme.
Veolia, the world's largest environment utility in terms of revenue, said that the sale will cut net debt by $1.82 billion.