Singapore’s GIC to Acquire Minority Stake in Reworld

GIC, Singapore’s sovereign wealth fund, said that it has signed an agreement with EQT Infrastructure V fund to acquire a 25% minority stake in Reworld via a combination of primary and secondary capital. The transaction is subject to customary conditions and approvals and is expected to close in Q1 2025.

Though the financial terms of the deal were not disclosed by either parties, Bloomberg News reported in May this year that the value could of the New Jersey-based Reworld at more than $8 billion, including debt.

EQT Infrastructure took the company private in November 2021 and will remain the largest shareholder following the closing of the transaction. Reworld has rapidly scaled into a leader in sustainable waste solutions, providing innovative and environmentally responsible services to businesses and communities throughout North America GIC said.

Since 2021, Reworld has nearly doubled its number of operational facilities and increased headcount by 800, significantly expanding its reach across new and existing core geographies. Today, Reworld reduces, recycles and recovers more than 20 million tons of waste across over 100 facilities for more than 4,600 customers.

The stake sale marks a strategic milestone in the company’s journey. As a strategic partner, GIC’s significant financial capital and scale will play an essential role in accelerating the company’s growth plans, and meeting the growing demand for sustainable waste solutions from it’s municipal, residential, commercial and industrial customers in North America. 

Supports Reworld’s Growth

JD Vargas, Partner within EQT Infrastructure’s Advisory Team, said that 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 the 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, Vargas said.

Ang Eng Seng, Chief Investment Officer, Infrastructure at GIC, said that as a long-term investor, the expansion of GIC’s partnership with Reworld reflects the significant potential for more sustainable alternatives to waste disposal, an essential service for all communities.

Manning Doherty, Head of Infrastructure, Americas at GIC, remarked that 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. We look forward to driving significant value through our continued partnership with the Company’s expert management team, and our long-standing partner EQT,” he added.

Citi and Houlihan Lokey are serving as financial advisors and Simpson Thacher & Bartlett are providing legal counsel to EQT Infrastructure.  Goldman Sachs is serving as exclusive financial advisor and Dechert is providing legal counsel to GIC.