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Swedish company EQT Infrastructure, a global investment organization, has acquired Covanta Holding Corp. with the goal of “accelerating the company’s journey to becoming the most sustainable provider of waste disposal services”.

Under terms of the agreement, shareholders will receive $20.25 in cash per Covanta common share in a transaction valued at $5.3 billion, including the assumption of Covanta’s net debt. . The purchase price represents a 37% premium to Covanta’s unaffected share price of $14.86 on June 8, the day before initial media speculation about the deal.

The acquisition is subject to Covanta shareholder approval, as well as customary government approvals, and is expected to close in the fourth quarter of this year.

“We are delighted to announce this agreement with EQT,” said Michael Ranger, President and CEO of Covanta. “Our comprehensive analysis over the past nine months has focused solely on enhancing value for our shareholders. EQT certainly recognizes the value we see in our business, and this transaction represents an excellent outcome of our strategic review.

“Furthermore, as an organization dedicated to sustainability and environmental stewardship, EQT shares our vision of a safer, cleaner and more prosperous future through sustainable waste management, ensuring that no waste is ever wasted.We couldn’t ask for a better partner as we embark on this next phase in the evolution of our business, delivering on our goal of building a sustainable future for all stakeholders.

Covanta is currently the world’s largest waste-to-energy provider, operating facilities in North America, Europe and the UK. Each year, Covanta’s more than 40 facilities process approximately 21 million tons of waste from municipalities and businesses and convert it into renewable electricity to power more than 1 million homes.

After the acquisition closes, EQT says it will work with Covanta’s management team to build on the company’s strengths, such as its portfolio of assets that provide essential waste management services. to municipal and commercial customers, its long-term community relationships and its many growth opportunities, including a strong project pipeline in the UK of new waste-to-energy infrastructure and Covanta’s environmental solutions platform.

Covanta will retain its corporate headquarters in Morristown, New Jersey, and its management team is expected to remain in place.

“EQT and Covanta are proven business leaders who share a similar approach to environmental stewardship, and this acquisition aligns directly with EQT’s thematic approach of investing in sustainable businesses that make an impact. positive on society,” says Alex Darden, Partner at EQT Infrastructure. Consulting team. “EQT is excited to partner with the entire Covanta team and invest in organizational, operational and digital technology initiatives that will enhance Covanta’s ability to provide sustainable solutions to growing waste challenges. As a responsible investor, EQT is committed to working with Covanta to transform and support the energy transition and circular economy in its local communities.

Barclays acted as lead financial advisor to EQT Infrastructure, and Kirkland & Ellis LLP acted as legal advisor in connection with the transaction. Credit Suisse and TD Securities also acted as financial advisors to EQT Infrastructure.