(Reuters) Swedish buyout firm EQT has put Energy from Waste (EEW) up for sale just months after taking full control of the waste-burning power producer, sources familiar with the matter said on Friday.
Europe’s market leader in energy generation from waste has sent out information packages to potential buyers, one source said.
More detailed information will follow by early October and tentative bids are due by early November, the source said.
EEW could be worth 1.4 billion euros to 1.8 billion euros ($1.6-2.1 billion) including debt, a multiple of 9-11 times core earnings, sources said.
EQT and advisor Morgan Stanley have started to explore options for the business after receiving indications of interests from potential buyers. Both declined to comment.
EQT bought a majority in EEW from E.ON in 2012 and acquired the remainder in May.
EEW has benefited from a booming German economy as well as rising imports of waste, helped in part by a rise in UK landfill taxes. It is running at full capacity, which has allowed it to raise prices.
While large local peers such as Remondis and Alba might face antitrust issues if they attempt to buy EEW, Asian groups with interests in the industry such as CKI, Everbright and Sembcorp are expected to express interest, the sources said.
EEW has long-term contracts for accepting waste and for delivering energy, process steam and heat. Like grids or pipelines, it generates stable returns, making it attractive for infrastructure funds.
Funds such as MS Infrastructure or Macquarie might take a look, the sources said.
In 2015, EEW is expected to post earnings before interest, taxes, depreciation, and amortisation of 160 million euros on sales of 470 million euros, the sources said.
The group has a 17 percent market share in Germany. It operates 18 plants with two-thirds of its sales coming from accepting garbage and the rest from selling energy.