Waste Management Inc. Sells Wheelabrator Technologies for $1.94 Billion
Waste Management Inc. has sold its waste-to-energy business, Wheelabrator Technologies to an affiliate of Energy Capital Partners for $1.94 billion.
Wheelabrator owns or operates 17 waste-to-energy facilities and four power producing facilities across the U.S. In total, their facilities process 7.5 million tons of waste and generate 853 MW of electricity. The subsidiary also operates four ash monofill landfills, three transfer stations, and an ongoing construction and development project in the UK. In 2013, Wheelabrator generated $845 million in revenue.
In addition to the sale, Waste Management will enter a long-term agreement to continue supplying waste to some of Wheelabrator’s facilities.
“This transaction aligns with our goal of driving shareholder value by maximizing our focus on our core business and reducing earnings volatility related to electricity sales,” President and CEO of Waste Management David P. Steiner said. “We look forward to a long-term partnership with ECP through our waste supply agreement.
Steiner expressed his gratitude to Wheelabrator’s employees, saying, “They made our waste-to-energy business successful, and we anticipate that the business will continue to be successful under ECP’s ownership.”
Energy Capital Partners was also excited about the deal, citing Wheelabrator’s talented employees and impressive track record.
“We believe Waste Management’s strong waste supply capabilities well complement ECP’s deep experience in power generation; and we look forward to continuing to provide Wheelabrator customers and partners with the same continued excellent service they have enjoyed under Waste Management’s ownership,” Tyler Reeder, a Partner in Energy Capital Partners, said.
The transaction is still subject to federal approval, but is expected to close later this year.