EQT is selling a 25% stake in North American waste-to-energy provider Reworld to Singaporean sovereign wealth fund GIC.
The EQT Infrastructure V fund is selling the interest to GIC, an existing co-investor in Reworld, through a combination of primary and secondary capital, in a deal intended to help in accelerating Reworld’s growth plans.
EQT Infrastructure, which bought Reworld – then known as Covanta – in a $5.3bn take private deal in November 2021, said it would remain the largest shareholder following the closing of the transaction.
Sustainable waste solutions firm Reworld provides services to businesses and communities throughout North America. Since 2021, the company has nearly doubled its number of operational facilities, expanding its reach across new and existing core geographies.
JD Vargas, partner within EQT Infrastructure’s advisory team, said: “This transaction will further enable Reworld to accelerate its growth journey, as it addresses the increasing demand for zero-waste-to-landfill solutions and circular economy goals.
“As US waste generation grows and more complex solutions are required, especially as landfill capacity declines in the core regions where Reworld operates, EQT remains committed to supporting the company in developing and deploying the sustainable waste management solutions necessary for a thriving circular economy.”
Ang Eng Seng, CIO of infrastructure at GIC, said: “As a long-term investor, the expansion of our partnership with Reworld reflects the significant potential for more sustainable alternatives to waste disposal, an essential service for all communities.
“GIC is committed to supporting the transition to net-zero in the real economy, and this funding will support the ambitious growth plans Reworld has as they seek to deliver a lower-emission alternative to landfills.”
Manning Doherty, head of infrastructure for the Americas at GIC, said: “As an existing co-investor in Reworld, GIC has been proud to partner with EQT to support the company’s transformation over the past three years.
“Today, Reworld is positioned for significant growth and this capital will help the business meet a growing demand for zero-waste-to-landfill solutions.”
Azeez Mohammed, president and CEO of Reworld, said: “With the combined support of EQT and GIC, we are in an excellent position to accelerate the growth of our innovative waste solutions, amplify our zero-waste initiatives, decrease reliance on landfills, and contribute to a more sustainable and resilient future for everyone.”
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