KKR flips Australian waste firm

Kohlberg Kravis Roberts has sold Cleanaway after just 11 months, reportedly making a A$250 million profit.

US buyout firm Kohlberg Kravis Roberts has sold Cleanaway to Transpacific Industries, Australia’s biggest rubbish collector, for A$1.25 billion ($1 billion).

Cleanaway:KKR sold the company after 11 months.

KKR bought Cleanaway and a mining services unit from logistics operator Brambles for A$1.83 billion just 11 months ago, making it one of the largest “quick flips” in the history of the Asia-Pacific region. Transpacific was one of the groups that lost out to KKR in the original auction.
According to Bloomberg, KKR paid about A$1 billion for the assets, which would suggest a 25 percent profit in less than a year.

Cleanaway has 65,000 customers for its restaurants, factories and refuse collection across 85 municipal councils.
KKR has also bought other assets in the waste management sector, including German company Der Grüne Punkt in 2005 and Dutch company AVR in 2006.
Other private equity firms have also been taking an active interest in the sector recently. In March Montagu Private Equity exited Cory Environmental after two years with a £588 million (€732 million, $966 million) sale to ABN Amro, while Equest Investments Balkans bought three Bulgarian waste management companies for €45 million ($60 million).