The Pennon Group has entered into an agreement for the sale of waste business Viridor to investment firm Planets UK Bidco Limited, formed by Kohlberg Kravis Roberts & Co LP (KKR).

The deal is expected to complete in summer 2020, after a meeting is held between shareholders for final approval.

Chris Loughlin, Pennon 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.

“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.”