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KKR & Co. Inc is nearing the sale of its controlling stake in Re Sustainability Ltd., with I Squared Capital and a consortium of TPG and the Canada Pension Plan Investment Board (CPPIB) emerging as the leading bidders. The Hyderabad-based environmental services company is expected to be valued at over USD 1.6 billion, with binding bids anticipated in the coming weeks. KKR has restructured the business by separating its municipal waste operations to sharpen its focus on industrial environmental services. The proposed transaction underscores growing investor interest in India's waste management and sustainability sector amid rising demand for environmental infrastructure. If completed, the deal would rank among the largest private equity exits in India's environmental services industry.
Global private equity firm KKR is moving closer to monetising its investment in Re Sustainability Ltd., with the sale process entering its final stages as a select group of investors compete to acquire a controlling stake in the Hyderabad-based environmental services company. The transaction is expected to rank among the largest deals in India's waste management sector and reflects growing investor confidence in businesses focused on sustainability and resource management.
According to industry reports, I Squared Capital and a consortium comprising TPG and the Canada Pension Plan Investment Board (CPPIB) have emerged as the final contenders in the race to acquire the company. While several global investment firms initially evaluated the opportunity, the field has narrowed as the process advances towards binding bids.
The proposed transaction is expected to value Re Sustainability at more than USD 1.6 billion, although earlier market discussions had suggested KKR was seeking an even higher valuation. Binding financial offers are expected after the completion of due diligence and final negotiations.
KKR acquired a 60% stake in the company—then known as Ramky Enviro Engineers—in 2018 for approximately USD 530 million. Over the years, the company expanded its presence across industrial waste management, biomedical waste treatment, recycling, water and wastewater management, environmental consultancy and resource recovery, establishing itself as one of India's leading environmental services providers.
As part of its exit strategy, KKR restructured the business by separating the municipal solid waste segment from the industrial waste and environmental services operations. The municipal business was transferred back to the founding promoters following regulatory approvals, allowing the remaining company to focus on higher-margin industrial waste management and sustainability solutions. This restructuring was aimed at making the business more attractive to prospective investors.
The sale has attracted significant attention from global infrastructure funds and private equity investors because of India's expanding environmental services market. Increasing industrialisation, stricter environmental regulations and the country's growing emphasis on circular economy practices have created long-term growth opportunities for companies specialising in waste treatment, recycling and resource recovery.
Re Sustainability has continued to strengthen its operational performance, with industrial waste management contributing a significant share of its earnings. The company also operates across multiple environmental service segments, including hazardous waste management, biomedical waste treatment, recycling, water infrastructure and sustainability consulting, giving it a diversified business model.
The outcome of the transaction is expected to be closely watched by investors, as it could establish a benchmark for valuations in India's environmental infrastructure sector. A successful sale would also mark the culmination of KKR's nearly eight-year investment, while providing the new owner with a platform to capitalise on rising demand for integrated sustainability and waste management solutions across India.
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