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KKR eyes Ramky Enviro Engineers; Bain-Piramal fund invests in Archean Chemical

Private equity giant KKR is set to acquire 60% stake Hyderabad-based waste management company Ramky Enviro Engineers Ltd for around $600 million (Rs 4,000 crore), The Economic Times reported, citing people in the know.

Ramky’s promoters and its existing private equity investors—Standard Chartered IL&FS Asia Infrastructure Growth Fund and IL&FS PE—will be selling their stakes to KKR, the ET report added.

Ramky has mandated investment bank Barclays to manage the sale, according to the report.

The company had received interest from private equity funds Brookfield, CDC and Blackstone, the report added.

Incorporated in 1994, Ramky Enviro Engineers is part of Ayodhya Rami Reddy-led Ramky Group. The company provides waste management across categories including hazardous, municipal, bio-medical and e-waste. It also recycles waste water, paper, plastic and integrated waste, according to the company website.

Ramky’s consolidated total income stood at Rs 1,625.28 crore and profit after tax was Rs 203.16 crore in the year through March 2017, according to VCCEdge, the data intelligence platform of VCCircle.

India Resurgent Fund puts in $125 mn in Archean Chemical

India Resurgent Fund (IRF), set up by Bain Capital Credit and Piramal Enterprises, has pumped in about Rs 800 crore in Chennai-based Archean Chemical Industries Ltd in a structured credit transaction, Mint reported, citing two people aware of the development.

IRF bought the existing loans of Archean Chemical from a group of public sector banks, the report added.

IRF will put in both debt and equity into the company. The fund is expected to pick up close to 30% stake in the company after the equity infusion, the report said quoting the two people mentioned above.

Incorporated in July 2009, Archean Chemical has a chemical manufacturing plant at Hajipir in Gujarat’s Kutch district. The plant produces sulphate of potash, industrial salt and bromine, according to a recent report by credit rating agency ICRA.

The company’s operating income stood at Rs 288.4 crore and posted a net loss of Rs 73.24 crore in the year through March 2017.

Archean Chemical is part of the Archean Group, which was established in 1984 by P B Anandam. The group has diversified business interests in mining and minerals, industrial salt, shipping, building materials, oil and gas services, industrial chemicals and fertilizers.

In 2014, Archean Group has raised an undisclosed amount in mezzanine funding from private equity major KKR.

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