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Leighton Holdings Limited (ASX:LEI) has inked a deal to sell its landfill and rubbish business, Thiess Waste Management, to Germany's Remondis AG & Co KG for $218 million.
While the sale is subject to some conditions Leighton expects to complete the divestment in the current financial year, which is expected to generate a pre-tax capital gain of about $115 million.
The sale price represents earnings before interest, tax, depreciation and amortisation multiples of about six times and earnings before interest and tax multiples of 10 times.
Leighton Holdings says the sale is part of the company strategy to recycle capital from non-core into core assets. The company also expects to make further divestments as it reviews the business and redirects capital into areas where returns can be enhanced.
In the first half of the 2012 financial year, Leighton reported a net profit $345 million.
