Macquarie to acquire Wheelabrator

Australian financial giant Macquarie is to acquire US waste specialist Wheelabrator Technologies.

US private equity firm Energy Capital Partners (ECP) has entered into a definitive agreement to sell Wheelabrator Technologies to Macquarie Infrastructure Partners (MIP). MIP, which operates within Macquarie Infrastructure and Real Assets, will make the investment through one of its managed funds.

Wheelabrator provides waste disposal solutions for local communities and delivers renewable energy to residential and commercial consumers. It currently has a platform of 26 strategically located assets in the US and the UK, including 19 waste-to-energy facilities (three under construction), three independent power plants and four ash monofills.

Robert Boucher, President and CEO of Wheelabrator, said: "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."

"Wheelabrator is a high-quality waste-to-energy business, with a well-diversified portfolio of assets," said Karl Kuchel, CEO at MIP. "We look forward to partnering with Wheelabrator management and staff to ensure the ongoing success of the company in the years ahead."

The transaction is subject to approval from the Federal Energy Regulatory Commission, the Committee on Foreign Investment in the US, the Federal Communications Commission and the New Jersey Department of Environmental Protection and other customary closing conditions, and is expected to close in the first quarter of 2019.

Credit Suisse and UBS Investment Bank served as financial advisors to Wheelabrator on the sale and Latham & Watkins served as legal counsel. Greentech Capital Advisors and RBC Capital Markets served as financial advisors to MIP and Kirkland & Ellis served as legal counsel.