US company Waste Management Inc. has sold energy-from-waste facility builder Wheelabrator Technologies to private equity firm Energy Capital Partners (ECP) for $1.94bn (£1.14bn).
As part of the deal, Waste Management will enter into a long-term agreement to supply waste to certain Wheelabrator facilities.
Wheelabrator owns or operates 17 energy-from-waste facilities and four power plants in the US that have a combined electricity generating capacity of 853MW.
The firm also has a presence in the UK through its partnership with Cory Environmental, and was the preferred bidder on the ill-fated King’s Lynn incinerator.
In 2008, it also entered a partnership with Shanks to build energy-from-waste facilities for local authorities in the UK.
David Steiner, president and chief executive at Waste Management, said: “This transaction aligns with our goal of driving shareholder value by maximising our focus on our core business and reducing earnings volatility related to electricity sales.
“We appreciate the hard work and dedication of our Wheelabrator employees. They made our energy-from-waste business successful, and we anticipate that the business will continue to be successful under ECP’s ownership.”
Tyler Reeder, partner at Energy Capital Partners, said: “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.”
The deal is expected to close in late 2014.