I Squared-Veolia consortium leads race to buy ReSL

A consortium of US private equity firm I Squared Capital and French environmental-services group Veolia has emerged as the frontrunner to acquire KKR-backed Re Sustainability (ReSL), India's largest integrated waste management firm. However, the consortium's offer, valuing the company at Rs 10,000 to Rs 11,000 crore ($1.1 to $1.2 billion), is significantly below the sellers' expectations of Rs 14,000 to Rs 16,000 crore ($1.45 to $1.7 billion) enterprise valuation, according to people aware of the matter.

KKR, which owns 60% of ReSL, has started parallel discussions with Indian billionaires and business groups from South and North India to gauge their interest. The only other PE consortium in the fray, National Investment and Infrastructure Fund (NIIF) and Canadian pension fund CPP Investments, has withdrawn from the race. The valuation gap may make it uncertain whether KKR will proceed with a sale at the current offer, as even at the non-binding stage, the consortium had made a substantially higher offer.

ReSL focuses on industrial waste management and operates across around 100 sites in India, Singapore, UAE, Saudi Arabia, and other countries. The company expects FY27 EBITDA of Rs 1,100 crore on revenues of Rs 3,400 crore. This marks KKR's second attempt to secure a full exit after nearly eight years of investment, following the company's NCLT-approved demerger.