Veolia agrees to sell U.S. solid waste business to Highstar for $1.9 billion
On July 19th, it was announced that Veolia Environnement's wholly owned subsidiary, Veolia Environmental Services North America, agreed to sell the U.S. solid waste activities of Veolia Environnement to Star Atlantic Waste Holdings LP, a portfolio company of Highstar Capital, a US-based infrastructure fund manager, for a total transaction value of $1.909 billion.
Following the completion of this transaction, Veolia Environnement's net debt will be reduced by around $1.820 billion. In its US waste business, Veolia Environnement will continue to grow its activities in hazardous waste and industrial services.
"This divestment is the second significant step in the execution of the strategic plan laid out last December," said Antoine Frérot, Chairman and Chief Executive Officer of Veolia Environnement. "The transformation of Veolia is progressing as planned."
According to a press release from www.veolia.com, the sale is subject to approval by US antitrust authorities and is expected to be finalized by the end of 2012. This divestiture is the second significant step in a €5 billion asset divestment program scheduled to be completed before end 2013, as announced by Veolia Environnement in December, 2011. In the first seven months of 2012, Veolia Environnement says they have signed 60% of the value anticipated for the planned divestiture program. Veolia's US Solid Waste businesses had revenue, operating cash flow and operating income for 2011 of $818 million, $212 million and $110 million respectively.
