KKR Nears Sale of Re Sustainability in $1.6 Billion Deal

Global private equity firm KKR & Co. Inc is nearing a deal to sell its controlling stake in the Hyderabad-based environmental services company, Re Sustainability Ltd. Sources familiar with the transaction value the company at over USD 1.6 billion. The process has reached a critical stage with I Squared Capital and a consortium led by TPG and CPPIB emerging as the primary bidders. A binding agreement is expected to be finalized in the near term as the process moves toward completion.

The potential sale follows significant strategic efforts by KKR to optimize the firm's portfolio. KKR previously underwent a major internal restructuring of the business by separating its municipal waste operations. This move aimed to sharpen the company's focus on industrial environmental services and improve overall margins. Analysts note this refinement made the entity significantly more attractive to prospective institutional investors and industrial buyers within the infrastructure and sustainability sectors.

The divestment highlights the growing investor appetite for industrial-grade environmental and waste management solutions in India. For India's sustainability landscape, the entry of major global capital like I Squared Capital or the TPG/CPPIB consortium signals robust confidence in local green infrastructure projects. Market participants will monitor the final valuation and the strategic direction of the new owners as they take over control. The deal marks a pivotal shift for Re Sustainability, which remains a key player in the country's push for industrial waste compliance and environmental safety standards.