EQT Infrastructure, Sweden, has signed an agreement to sell 25 percent minority stake in waste management company Reworld to Singapore-based GIC via a combination of primary and secondary capital.
EQT Infrastructure took Reworld private in November 2021 and will remain the largest shareholder following the closing of the transaction.
“This transaction will further enable Reworld to accelerate its growth journey as it addresses the increasing demand for zero-waste-to-landfill solutions and circular economy goals,” says JD Vargas, an EQT Infrastructure advisory team partner. “As U.S. waste generation grows and more complex solutions are required, especially as landfill capacity declines in the core regions where Reworld operates, EQT remains committed to supporting the company in developing and deploying the sustainable waste management solutions necessary for a thriving circular economy.”
According to EQT, GIC’s financial capital and scale will be critical in accelerating Reworld’s growth plans and meeting the demand for sustainable waste solutions.
“As a long-term investor, the expansion of our partnership with Reworld reflects the significant potential for more sustainable alternatives to waste disposal, an essential service for all communities,” GIC Chief Investment Officer Ang Eng Seng says. “GIC is committed to supporting the transition to net-zero in the real economy, and this funding will support the ambitious growth plans Reworld has as they seek to deliver a lower-emission alternative to landfills."
Since 2021, Reworld has almost doubled its number of operational facilities and increased headcount by 800. The company, formerly known as Covanta, rebranded to Reworld in April and, since then, has launched a handful of services, including the ReCredit program and Customer Gateway. Today, EQT reports that Reworld processes more than 20 million tons of waste across more than 100 facilities for approximately 4,600 customers.
“This partnership propels Reworld forward by significantly enhancing our ability to serve our customers and communities as their needs evolve,” Reworld CEO Azeez Mohammed says. “With the combined support of EQT and GIC, we are in an excellent position to accelerate the growth of our innovative waste solutions, amplify our zero-waste initiatives, decrease reliance on landfills and contribute to a more sustainable and resilient future for everyone.”
The transaction is subject to customary conditions and approvals and is expected to close in the first quarter of 2025.
Courtesy : recyclingtoday.com