Waste Management Inc., the owner of Wheelabrator Technologies Inc., has announced that it has sold the Wheelabrator business to Energy Capital Partners for $1.94bn (around £1.1bn).
The sale is subject to regulatory approval and is expected to be completed in late 2014, according to Waste Management Inc (WMI), which is reportedly the largest “trash hauler” in the US. It says the sale is in order to “reduce its exposure to electricity prices”. It is understood that the proceeds of the sale will go towards WMI repurchasing shares and repaying debts.
Wheelabrator owns or operates 21 plants in the US, processing more than 7.5m tonnes of waste with a combined generating capacity of 853MW. It is also known in the UK due to its partnerships with Shanks and Cory Environmental, while it was also the preferred bidder for the now-abandoned Kings Lynn incinerator project.
Reports state that Energy Capital will continue to buy waste from Waste Management Inc. under long-term contracts, and it will also enter into a long-term agreement to supply waste to certain Wheelabrator facilities after the closing of the sale.