Completion of the disposal is subject to the approval of Shanks' shareholders and is expected to be completed at the end of June.
The sale to Terra Firma means that Pennon Group, which owns Viridor Waste Management and had also expressed interest in buying the Shanks business, is out of the running.
Ian Clubb, chairman of Shanks said: “This disposal gives Shanks the financial flexibility to pursue opportunities in its continental businesses as well as integrated municipal waste contracts in the UK.”
Guy Hands of Terra Firma Capital Partners said: “The acquisition of Shanks' UK landfills, in conjunction with Terra Firma's purchase of Waste Recycling Group for 531 million in June 2003, reflects the team's continued interest in the UK waste industry. The combination of Shanks' UK landfills with Waste Recycling Group will bring added operational and strategic focus to the business.”
Pennon Group issued a statement saying that the price agreed between Shanks and Terra Firma would “not have satisfied Pennon's investment criteria”.
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