Jul 30, 2014 - US company Waste Management Inc (NYSE:WM) said yesterday it will divest waste-to-energy plants operator Wheelabrator Technologies Inc in a USD-1.94-billion (EUR 1.45) all-cash deal.
The subsidiary owns and runs 21 power plants with a combined capacity of 853 MW.
The buyer is Energy Capital Partners (ECP), a private equity firm whose current portfolio also includes distributed solar firm Sungevity Inc. The deal calls for the seller to sign a long-term waste supply agreement with the target. The transaction needs to be cleared by the Federal Energy Regulatory Commission (FERC). Its completion is seen to occur in late 2014.
Wheelabrator's portfolio includes 17 waste-to-energy facilities along with four independent power-generating sites. In addition, the company owns four ash monofill landfills and three transfer stations. It is currently developing a project in the UK. Last year, the firm achieved a revenue of about USD 845 million.
The vendor noted it will spend the sale proceeds on the acquisition of assets related to its core waste management services business. Some of the funds will also go for share buybacks and the repayment of debt.
(USD 1.0 = EUR 0.746)
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