(Bloomberg) -- Singapore’s sovereign wealth fund GIC Pte has agreed to acquire a 25% stake in waste management company Reworld.
GIC is buying the holding from Reworld’s owner, the investment firm EQT AB, according to a statement on Wednesday that confirmed an earlier Bloomberg News report.
Financial terms were not disclosed. Bloomberg News reported in May that a deal could value Morristown, New Jersey-based Reworld at more than $8 billion, including debt.
Led by Chief Executive Officer Azeez Mohammed, Reworld has more than 100 facilities, according to its website. It serves municipal, residential, commercial and industrial customers in North America. EQT acquired the company in 2021 for $5.3 billion, including the assumption of the company’s net debt.
“We’ve been able to grow earnings by 50% since we acquired the business by increasing volumes by running operations more efficiently and pivoting toward industrial-profile waste, which is more profitable than municipal solid waste,” EQT partner JD Vargas said in an interview.
Customers have increasingly sought to divert their waste from landfill to more sustainable alternatives such as Reworld, Vargas said. Reworld has also grown via acquisitions, having bought eight companies since EQT took control, he said.
EQT holds Reworld in its EQT Infrastructure V fund. In late September, EQT infrastructure funds agreed to sell a minority stake in data center provider EdgeConneX to Sixth Street.
Citigroup Inc. and Houlihan Lokey Inc. are serving as financial advisers to EQT Infrastructure. Goldman Sachs Group Inc. is exclusive financial adviser to GIC.
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