Macquarie Asset Management is in the early stages of a sale process review of Win Waste Innovations, a waste-to-energy company that operates incinerator power facilities, four sources briefed on the matter told PE Hub.
Win Waste, formerly known as Wheelabrator, is being advised by Macquarie’s investment banking group and Nomura Greentech as co-sellside advisers. The company generated more than $300 million of EBITDA this past year, the sources said.
Win Waste has outstanding debt in the ballpark of $1.6 billion or more. Based on its debt, Win Waste could see around a 10x EBITDA valuation in a sale, one source said. The median valuation for providers of waste collection, recovery and disposal is 12.7x EBITDA for the last 24 months, according to SIPA privateMetrics, part of PEI Group.
Based on Win Waste’s integrated landfill operations, intermodal facilities, recycling function and WTE incinerators, the company should see strong interest from global infrastructure funds and a select number of strategics, the second source said. The buyer universe for Win Waste as a whole company remains small, with European strategics like Veolia or FCC Group potential candidates, that source said. A larger group of buyers exists for either the company’s waste collection and landfill business, or its waste energy business alone, the source added.
Reports circulated between 2021 and 2022 that Win Waste was also evaluating a potential IPO listing, but this time around Macquarie is only gearing up for a potential sale as an exit, sources said.
Headquartered in Portsmouth, New Hampshire, Win Waste operates waste management collection sites such as landfills, recycling and waste-to-energy power plant facilities primarily across the Northeast US. Currently it operates 12 WTE facilities from Maine to Maryland.
Formed in 1911 as American Foundry Equipment, the company became known as Wheelabrator in 1971 after the opening of the first WTE incinerator in Saugus, Massachusetts. Macquarie rebranded the company as Win Waste in 2021 to reflect the company’s expansion into additional waste and environmental service channels. Macquarie acquired Win Waste from ECP in 2019.
Macquarie declined to comment. Win Waste and Nomura Greentech did not respond to requests for comment.
For more on the WTE market, check out PE Hub‘s 2023 interview with EQT’s infrastructure group partner Juan Diego Vargas.