KKR is approaching the final stretch in the sale of its investment in Re Sustainability Ltd., as the bidding process narrows to a small group of contenders for control of the Hyderabad-based environmental services company.
According to industry reports, I Squared Capital and a consortium of TPG and the Canada Pension Plan Investment Board (CPPIB) have emerged as the final bidders. The deal is expected to be one of the biggest transactions in India's waste management sector.
The proposed sale is expected to value Re Sustainability at more than USD 1.6 billion. Earlier market discussions had indicated that KKR was seeking a higher valuation, but binding financial offers are expected only after due diligence is completed and final negotiations take place.
KKR bought a 60% stake in the business in 2018, when the company was known as Ramky Enviro Engineers, for approximately USD 530 million. Since then, the company has expanded across industrial waste management, biomedical waste treatment, recycling, water and wastewater management, environmental consultancy, and resource recovery.
As part of its exit preparations, KKR restructured the company by separating the municipal solid waste business from its industrial waste and environmental services operations. Following regulatory approvals, the municipal segment was transferred back to the founding promoters. The remaining business was then positioned around industrial waste management and sustainability solutions, which the source article said was intended to make the company more attractive to potential buyers.
The sale process has drawn interest from global infrastructure funds and private equity investors amid growth in India's environmental services market. The source article said increasing industrialization, tighter environmental regulations, and a greater focus on circular economy practices have created long-term opportunities for companies involved in waste treatment, recycling, and resource recovery.
Re Sustainability's industrial waste management business contributes a large share of its earnings. The company also operates in hazardous waste management, biomedical waste treatment, recycling, water infrastructure, and sustainability consulting, giving it a diversified model across environmental services.
Investors are expected to watch the outcome closely because the transaction could set a benchmark for valuations in India's environmental infrastructure sector. A completed sale would also mark the end of KKR's nearly eight-year investment and hand the new owner a platform tied to rising demand for integrated sustainability and waste management solutions across India.
