Global investment firm KKR has agreed to acquire a 60% stake in Ramky Enviro Engineers Limited (REEL), a leading provider of environmental services and solutions in India and across the globe. The company will invest about US$530 million through a combination of primary and secondary investments. The deal gives Ramky an enterprise value of US$925 million.

REEL's service provision includes the management, collection, transport and processing of hazardous, municipal, biomedical and e-waste, as well as the recycling of paper, plastic and chemicals. The company also focuses on renewable energy generation – with a strong emphasis on waste-to-energy processes – and offers consulting and integrated environmental services.

KKR makes the investment from its Asian Fund III and the deal represents one of the largest buyouts in India, in addition to being the first private equity buyout in the country's highly attractive environmental services sector.

This announcement comes amid growing concern for environmental management in India, with Prime Minister Narendra Modi's administration embarking on the Swachh Bharat (Clean India) mission. This initiative aims to reduce pollution and improve critical sanitation infrastructure to boost living standards in cities, towns and rural villages nationwide.

REEL samples and analyses its business' impact on the air, soil and water of the areas where it operates, and it manages community outreach and engagement programmes. Barclays acted as REEL's adviser in the transaction, while Ernst and Young advised KKR. Environmental Resources Management serves as the environmental management adviser to the deal.

REEL has a presence in over 60 locations across 20 Indian states, as well as in certain Southeast Asian, Middle Eastern and African markets.