The net cash proceeds are expected to be at approximately £3.7bn upon completion due to current Viridor account debts and customary costs. Credit: Chris Bentley.

British infrastructure group The Pennon Group is selling recycling, renewable energy and waste-management business Viridor to Planets UK Bidsco for £4.2bn.

Planets UK Bidco is a new company established under the advisement of global investment firm Kohlberg Kravis Roberts (KKR)

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The transaction will be carried out cash-free and debt-free. It is conditional on Pennon shareholders’ approval.

The net cash proceeds are expected to be at approximately £3.7bn upon completion due to current Viridor account debts and customary costs.

The Pennon Group intends to use the proceeds to reduce company borrowings, including those taken from shareholders. The rest of the funds will be kept for future opportunities.

The transaction is expected to be completed by this coming summer.

Pennon chief executive Chris Loughlin said: “Following a detailed review of the Group’s strategic options, we are pleased to announce the proposed sale of Viridor for an Enterprise Value of £4.2 billion. The transaction is great news for shareholders as it recognises the strategic value that Pennon has developed and nurtured in Viridor over many years and accelerates the realisation of that value for shareholders.

“On completion of the transaction, Pennon will continue to focus on its sector-leading water and wastewater businesses and will consider further growth opportunities that create value for customers, employees and shareholders.”