KKR is preparing to launch the sale of its UK-based recycling and waste management group Viridor next month, seeking a valuation of around £7bn including debt, according to sources familiar with the matter cited by the Financial Times.

Potential bidders for the infrastructure asset include CK Infrastructure Holdings, Equitix, and Brookfield, though other interested parties may emerge. KKR acquired Viridor from Pennon Group in March 2020 for £4.2bn, in one of the largest transactions completed during the early stages of the pandemic.

Viridor operates recycling and waste management facilities across the UK and runs a carbon capture storage project in Runcorn, which could benefit from UK government support. The business generated £579.4m in revenue and £153.6m in pre-tax profits for the year ending March 2024.

The sale comes as UK infrastructure assets continue to attract strong investor demand thanks to stable, government-backed revenues, though large-scale transactions have faced headwinds from a slowdown in M&A and IPO markets.

KKR, which manages more than £80bn in infrastructure assets globally, has been an active player in the UK market, including a previous bid to acquire a stake in Thames Water. CKI is one of the largest UK infrastructure owners, while Equitix’s portfolio spans major assets including the M25 London orbital motorway.

KKR, CKI, Equitix, Brookfield, and Viridor declined to comment.

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