EQT Infrastructure to acquire Covanta Holding Corporation, a global leader in waste-to-energy solutions, for 5.3 billion USD


  • Energy recovery from waste is a vital segment of the waste disposal value chain by providing sustainable disposal solutions for wastes that would otherwise go to landfill
  • The transaction highlights EQT’s commitment to partnering with specific-purpose companies that are an integral part of the ongoing energy transition and the growth of the circular economy.
  • EQT Infrastructure will accelerate Covanta Holding Corporation’s journey to become the most sustainable provider of waste disposal services, convincing results for all stakeholders

EQT is pleased to announce that EQT Infrastructure has agreed to acquire Covanta Holding Corporation (“Covanta” or the “Company”) (NYSE: CVA), owner and operator of waste-to-energy facilities (“WtE”) in North America . Under the terms of the agreement, which was unanimously approved by Covanta’s board of directors, shareholders will receive $ 20.25 in cash per Covanta common share in a transaction valued at 5.3 billion USD, including assumption of Covanta’s net debt. The purchase price represents a 37% premium over Covanta’s unaffected share price of $ 14.86 on June 8, the day before initial media speculation of a deal.

Waste-to-energy is an essential part of the waste disposal value chain, providing a much more sustainable alternative to landfill waste for communities and businesses, with a significantly smaller property footprint per tonne eliminated compared to traditional landfills. The process ensures optimal use of waste by: reducing by 90% the volumes of waste that would otherwise go to landfill; eliminate nearly one tonne of greenhouse gas equivalent per tonne of municipal solid waste; generate sustainable and highly reliable electricity, capacity and steam for utilities and industrial customers; and recycling of metals found in municipal solid waste.

Headquartered in Morristown, New Jersey, Covanta has 41 WtE facilities strategically located in key metropolitan areas in the United States, Canada and Europe. The company and its nearly 4,000 full-time members safely convert approximately 21 million tonnes of waste into sustainable and reliable electricity and generate approximately 10 TWh of base electricity and approximately 600,000 tonnes of recycled metals per year. Covanta’s three diverse and complementary business lines include waste treatment and services, power generation and metal recycling, and the Company is expected to generate Adj. EBITDA of around USD 460 to 480mm in 2021.

Alex Darden, Partner on EQT Infrastructure’s Advisory Team, said: “EQT and Covanta are proven business leaders who share a common approach to environmental management, and this acquisition aligns directly with the EQT thematic approach of investing in sustainable companies that have a positive impact. on the society. 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 deliver 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 the circular economy in its local communities.

EQT’s goal-driven investment model presents several growth opportunities for Covanta, whose business is focused on sustainable waste treatment and advancing transitions to a circular economy. EQT is committed to working closely with Covanta, providing both financial and operational support, in order to achieve compelling results for all stakeholders. Under the ownership of EQT, Covanta will continue to differentiate its service offerings, with a focus on innovation and sustainable energy. EQT is committed to growing the Covanta team, making short-term operational upgrades, improving customer partnerships and building trust and understanding with the communities that Covanta serves.

Michael Ranger, President and CEO of Covanta, said: “We are delighted to announce this agreement with EQT. Our comprehensive analysis over the past nine months has focused particularly on improving shareholder value. EQT certainly recognizes the value we see in our business and represents an excellent outcome of our strategic review. In addition, as an organization dedicated to sustainability and environmental management, EQT shares our vision of a safer, cleaner and more prosperous future through sustainable waste management, thus ensuring that no waste occurs. is never wasted. We couldn’t ask for a better partner as we embark on this next phase of our business evolution, realizing our goal of building a sustainable future for all stakeholders.

The transaction is subject to customary conditions and approvals. It should close by the end of the year.

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 advisers to EQT Infrastructure.

With this transaction, EQT Infrastructure V is expected to be invested 50-55% (including closed and / or signed investments, announced public offerings, if any, and minus any expected syndication).

About EQT
EQT is a dedicated global investment organization with over € 67 billion in assets under management in 26 active funds. EQT funds have portfolio companies in Europe, Asia-Pacific and the Americas with total revenues of around 29 billion euros and over 175,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.

More information: www.eqtgroup.com
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About Covanta
Covanta is a global leader in providing sustainable waste and energy solutions. Every year, Covanta’s modern waste-to-energy (“WtE”) facilities safely convert around 21 million tonnes of municipal and business waste into clean, renewable electricity to power one million homes and recycle 600,000 tonnes of metal. Through an extensive network of processing and recycling facilities, Covanta also provides comprehensive industrial materials management services to businesses seeking solutions to some of today’s most complex environmental challenges.

More information: www.covanta.com

US inquiries: Stephanie Greengarten, +1 646 687 6810, [email protected]
International inquiries: EQT press service, [email protected], +46 8 506 55 334



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