Reuters – Highstar Capital Pays $1.9B for Veolia Unit

French utility Veolia Environment SA will sell its U.S. waste management business to infrastructure fund manager Highstar Capital Star for $1.909 billion to help repay debts. The sale of the U.S. waste management business, expected to be finalized by the year-end, will cut Veolia’s net debt by around $1.820 billion, the utility said.

(Reuters) – French utility Veolia Environment SA will sell its U.S. waste management business to infrastructure fund manager Highstar Capital Star for $1.909 billion to help repay debts.

 

Veolia said late last year that it plans to cut its debt to less than 12 billion euros ($14.72 billion) by the end of 2013 by shedding 5 billion euros of assets. Last month, the waste, water and energy group sold a majority stake in its regulated U.K. water business for 1.24 billion pounds ($1.92 billion) including debt.

 

The sale of the U.S. waste management business, expected to be finalized by the year-end, will cut Veolia’s net debt by around $1.820 billion, the utility said.

 

“This divestment is the second significant step in the execution of the strategic plan laid out last December,” Veolia Chief Executive Officer Antoine Frérot said.

 

Veolia Environmental Services North America said the deal will be done with Highstar Capital’s portfolio company Atlantic Waste Holdings LP.