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Highstar ‘considers purchase of Veolia’s waste management business’
Posted on Friday, 13 July 2012 14:38
New York-based private equity firm Highstar Capital is in talks to buy Veolia Environment’s US waste management business, according to Reuters, citing three people with knowledge of the matter.
These people said the buyout group could acquire Veolia ES Solid Waste for up to USD 2.00 billion, enabling the target’s parent company to strengthen its balance sheet.
They added that the buyer has made a final offer, and it is not clear if there are any other interested bidders.
Reuters quoted its sources as saying that an outcome is expected within the next several days, but that no deal has been reached at present and the transaction could yet fall through.
Credit Suisse and Barclays are advising the vendor on the acquisition, the news provider added.
Neither of the companies have commented on the report.
Véolia Environnement is based in Paris and was formed as Compagnie Générale des Eaux in 1853.
The business is now a leader in environmental solutions, according to its website, and employs over 330,000 people worldwide.
Last year, it claims to have provided drinking water to 103.00 million people and supplied 73.00 million customers with wastewater services.
Véolia generated revenue of EUR 29.65 million in fiscal 2011.
Highstar Capital was established in 2000 and invests primarily in the energy, environmental services and transportation sectors globally.
Since its foundation by current managing partner Christopher Lee, the company has invested USD 5.60 billion.
Its portfolio includes stakes in oil and gas pipeline operator Kinder Morgan, water company Utilities and London City Airport.
Previous holdings include Dutch electricity provider InterGen and New Jersey-headquartered waste-to-energy business American Ref-Fuel Holdings Corporation.
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