It’s the largest post-coronavirus buyout so far, reported the Financial Times. The deal values Viridor, a division of FTSE 250-listed water and waste company Pennon Group, at 18.5 times its earnings in the year to March 2019.
The acquisition by KKR’s infrastructure fund comes at a time when global M&A has ground to a near-halt as markets are roiled by the impact of the virus outbreak.
Many dealmakers are unable to attend in-person meetings for due diligence and debt markets are struggling. Viridor is “incredibly resilient, incredibly defensive and supported by long-term contracts with local authorities,” said James Gordon, a member of KKR’s European infrastructure team.
The private equity firm has a “very interesting opportunity to grow the business and . . . generate more sustainable waste treatment options for the UK,” he said.
The group decided to proceed with KKR’s offer despite having higher rival bids because it was the most certain in the current climate, said two people familiar with the matter. Banks have agreed to finance the debt for the deal, a person familiar with the matter said.
Full Content: Financial Times
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