Dive Summary
- Reuters is reporting that HighStar Capital is in advanced discussions to buy Veolia ES Solid Waste.
- According to insiders, the deal could be valued as much as $2 billion. With a trailing EBITDA of approximately $250 million, this represents an 8x earnings multiple
- Highstar Capital already owns Advanced Disposal Services and Interstate Waste Services
- In the Reuters report, Waste Connections CFO, Worthing Jackman, confirmed that they were not part of the bid
- Final resolution of the sale process is expected in the coming days. There is still a chance that Veolia's parent company will walk away from the sale
From the article:
An infrastructure fund manager that has severed ties with bailed-out insurer American International Group is in advanced discussions to buy Veolia Environment SA's U.S. waste management business, in a deal that could be valued at as much as $2 billion, according to three people familiar the matter.
A successful sale would allow Veolia to strengthen its balance sheet, which was saddled with 14.7 billion euros of debt as of the end of last year, by tapping demand to consolidate the fragmented nature of the U.S. waste management industry.
Highstar Capital, owner of waste management businesses in the U.S. Northeast and Southeast, has lined up financing and made a final offer for the unit, Veolia ES Solid Waste Inc, the people said.
While it was not immediately clear if there was another bidder, Highstar appears to be in the lead to buy the Veolia business, the people said.
Waste Connections Inc, a solid waste services company, had been mentioned by industry analysts and bankers as another potential buyer for the Veolia asset, but its chief financial officer said on Thursday the company did not bid.
