Equitix is pleased to announce that it has reached an agreement with Kohlberg Kravis Roberts & Co. L.P. Infrastructure Fund (“KKR” or “KKR Infrastructure”) on the acquisition of a 20% equity stake in Viridor Energy Limited (“Viridor”). Considering the inflation linked, long term contractual nature of Viridor’s cashflows which are majority backed by government counterparties and our deep expertise in the waste to energy sector, this investment provides a strong strategic fit and is core to the investment mandate of Equitix managed funds.
Viridor has the UK’s largest and most diversified Energy from Waste (“EfW”) portfolio and was initially acquired by KKR in July 2020, having been carved-out from Pennon Group plc. Following a reorganisation, Viridor Energy Limited now contains 11 high-quality operational assets and benefits from its significant scale and long-term customer and supplier contracts. The agreement represents another key milestone in the relationship between Equitix and KKR, following cooperation on the acquisition of John Laing plc in May 2021.
Achal Bhuwania, Chief Investment Officer at Equitix, said: “Equitix is proud to partner with KKR through this investment and we look forward to developing our relationship further in the future. The Viridor portfolio contains operational EfW assets of the highest quality, which are supported by long-term inflation linked contracts, and we are delighted to be a part of the future of this company. As a 20% owner, Equitix will work with Viridor and KKR to help lead the transition to Net Zero through sustainable energy sources, and specifically through Carbon Capture, Utilisation and Storage (CCUS) at the EfW plants.”