US-headed private equity and credit investment firm Energy Capital Partners (ECP) has announced that it has entered into a definitive agreement to sell Wheelabrator Technologies Inc. (Wheelabrator), a leading owner and operator of waste-to-energy (WtE) facilities, to Macquarie Infrastructure Partners (MIP), which operates within the Macquarie Infrastructure and Real Assets (MIRA) division of Macquarie Group. MIP will make the investment through one of its managed funds.
Wheelabrator Technologies is the second-largest US waste-to-energy business and is an industry leader in the conversion of everyday residential and business waste into clean energy. The company provides a critical waste disposal solution for local communities and delivers renewable energy to residential and commercial consumers.
Wheelabrator currently has a platform of 26 strategically located assets located in the United States (US) and the United Kingdom (UK), including 19 waste-to-energy (WtE) facilities (three under construction), three independent power plants and four ash monofills.
Today’s announcement marks another important step for the company. Over the last few years under ECP’s ownership, we have enhanced our core business here in the United States and further developed on our strong pipeline of additional waste-to-energy projects in the United Kingdom. We are confident that the long term support from MIP will allow Wheelabrator to continue to operate as a trusted and reliable partner for its customers and continue to execute on our growth agenda, said Robert Boucher, President, and CEO of Wheelabrator.
Energy Capital Partners is a private equity and credit investment firm with US$19 billion in capital commitments investing and managing energy infrastructure assets and businesses.
We would like to express our appreciation to Bob and the entire Wheelabrator team for the excellent partnership we have enjoyed and the success achieved by the business under ECP’s ownership. We are confident that Wheelabrator will continue to succeed under MIP’s ownership, said Tyler Reeder, Partner at ECP.
Established in 1996, Macquarie Infrastructure and Real Assets is a business within the Macquarie Asset Management division of Macquarie Group and a global alternative asset manager focused on real estate, infrastructure, agriculture and energy assets. Macquarie Infrastructure and Real Assets has significant expertise over the entire investment lifecycle, with capabilities in investment sourcing, investment management, investment realization, and investor relations.
Wheelabrator is a high-quality waste-to-energy business, with a well-diversified portfolio of assets. We look forward to partnering with Wheelabrator management and staff to ensure the ongoing success of the Company in the years ahead, said Karl Kuchel, CEO of MIP.
The transaction is subject to the Federal Energy Regulatory Commission, Committee on Foreign Investment in the United States, Federal Communications Commission and New Jersey Department of Environmental Protection approvals and other customary closing conditions, and is expected to close in Q1 2019.
Credit Suisse and UBS Investment Bank served as financial advisors to Wheelabrator on the sale and Latham & Watkins LLP served as legal counsel. Greentech Capital Advisors and RBC Capital Markets served as financial advisors to MIP and Kirkland & Ellis served as legal counsel.