Wheelabrator sold to Energy Capital for $1.94B
Waste Management to supply waste to its former subsidairy.
HOUSTON — Waste Management is selling its Wheelabrator Technologies subsidiary to Energy Capital Partners for $1.94 billion as part of its effort to focus on its core business.
Wheelabrator Technologies Inc. owns or runs 17 waste-to-energy facilities and four independent power-producing plants in the US. The business also has four ash monofill landfills, three transfer stations and an ongoing development and construction project in the UK.
Wheelabrator’s 2013 revenue totalled about $845 million.
Waste Management Inc. will enter a long-term agreement to supply waste to certain Wheelabrator facilities once the transaction is complete.
The Houston-based trash and recycling hauler plans to use proceeds from the sale to buy assets related to its core business and for stock repurchases.
The deal is targeted to close later this year. It still needs approval from the Federal Energy Regulatory Commission.
Energy Capital Partners is a private equity firm based in Short Hills, NJ that invests in North America’s energy infrastructure.