The owners of one of the UK's biggest recycling and residual waste businesses, Viridor, have entered into an agreement to sell the company.
Pennon Group announced it is planning to sell Viridor to Planets UK Bidco, a newly-formed company established by funds advised by Kohlberg Kravis Roberts, at a value of £4.2 billion (€4.47 billion).
In a statement, Pennon Group said it will now be focusing on its water and wastewater services. Chris Loughlin, Pennon Group's chief executive, said: "Following a detailed review of the group's strategic options, we are pleased to announce the proposed sale of Viridor for an enterprise value of £4.2 billion (€4.47 billion).
"The transaction is great news for shareholders as it recognises the strategic value that Pennon has developed and nurtured in Viridor over many years and accelerates the realisation of that value for shareholders.
"On completion of the transaction, Pennon will continue to focus on its sector-leading water and wastewater businesses and will consider further growth opportunities that create value for customers, employees and shareholders."