IL&FS PE-backed waste management firm Ramky Enviro Engineers buying Australia’s Enviropacific

Hyderabad-based waste management company Ramky Enviro Engineers Ltd (REEL), through its subsidiary Ramky Environment Pty Ltd, is buying Australia’s environmental engineering and petrochemical services provider Enviropacific Services Pty Ltd.

“Terms of the deal were not disclosed, but a person familiar with the matter said the initial amount and performance-based incentive payments totalled around 45 million Australian dollars ($41.5 million),” Wall Street Journal stated.

EAC Partners and McCabes Lawyers advised Enviropacific on the deal while Clifford Chance advised Ramky.

The acquisition comes a couple of months after REEL delayed a $200 million initial public offering due to market conditions, after hiring banks including JPMorgan and Bank of America to manage it.

Founded in 1994 by Alla Ayodhya Rami Reddy, along with five other people, REEL is part of the Rs 4,500 crore-plus Ramky Group that provides comprehensive environment management services. The firm has set up the first integrated bio-medical waste management facility, the first integrated hazardous waste management facility and the first integrated municipal waste management facility in India, based on a tipping fee model.

This is the second time the firm is acquiring an Australian company in less than a year. In October 2012, it acquired the Australian firm Entech Industries Pty Ltd.

In 2009, Standard Chartered IL&FS Asia Infrastructure Growth Fund invested Rs 200 crore for a minority stake in REEL. But after two years, the private equity fund sold its stake to IL&FS Infrastructure Equity Fund for an undisclosed amount.

Enviropacific operates two divisions – environmental engineering and petrochemical services. The environmental engineering division provides integrated site remediation services for solid and liquid contamination problems while the petrochemical unit provides design, installation and maintenance services to retail, industrial and bulk petrochemical storage and handling facilities.

(Edited by Sanghamitra Mandal)

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