Goldman Sachs has put Synagro Technologies, an owner and operator of biosolid and organic residue treatment and recycling facilities, up for sale, according to sources familiar with the sale process.

The Baltimore-based firm has been part of Goldman Sachs’ West Street Infrastructure Partners III (WSIP III) fund since it acquired the asset from EQT Infrastructure II in December 2020. At the time, sources said the deal was worth USD 600m-USD 720m.

Jefferies and Goldman Sachs are acting as sellside financial advisors on the process, which has attracted infrastructure funds, three sources familiar said. Bidding for the asset is already in the second round, according to one of the sources.

Current EBITDA is approximately USD 100m, according to two of the sources. The same sources noted that under WSIP III’s ownership Synagro may have done bolt-on acquisitions to grow.

A third source said EBITDA may have increased up to USD 120m.

A fourth source said the winning bidder will probably be another infrastructure fund buyer, and that the asset is well-suited for infrastructure funds because of the size and focus of the company.

EQT’s second fund acquired Synagro out of bankruptcy court in 2013 and later refinanced an exit loan the business secured upon emerging from bankruptcy with a credit facility from what was then AMP Infrastructure Debt Fund III.

The asset was previously owned by Carlyle Infrastructure Partners (CIP), which acquired the asset in 2007.

Synagro’s recently released 2023 Sustainability Report highlights “how the company has enabled its customers to avoid more than two million metric tons of CO2 by using its services to convert biosolids, organics, residuals and food waste into nutrient-rich fertilizer rather than sending the waste to a landfill.”

A Goldman Sachs spokesperson declined to comment. Jefferies and Synagro did not respond to requests for comment.