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07/06/2009 06:27 AM
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Covanta Acquires EfW Facilities for $450M
SustainableBusiness.com News
Covanta Holding Corporation (NYSE: CVA), a leader in the development, ownership and operation of Energy-from-Waste (EfW) facilities and other renewable energy projects, announced plans to acquire most of the North American EfW business of Veolia Environmental Services North America Corp.
The purchase price of $450 million, less net debt and minority interests will be paid in cash.
The Energy-from-Waste operations to be acquired are located in Long Beach, CA; Dade, FL; Dutchess, NY; Islip, NY; Montgomery, PA; York, PA; and Vancourver, Canada.
Covanta said it expects the entire transaction will closed by year end--though it may occur in stages.
Each of the seven EfW businesses to be acquired includes a long-term operating contract with the respective municipal client.
Collectively, the seven EfW facilities process approximately 3 million tons of waste per year. The acquired businesses compliment Covanta's existing portfolio, which includes operation of 38 EfW facilities that process approximately 17 million tons of municipal solid waste annually.
Covanta said the acquisition is expected to add approximately $60 million of operating cash flow during 2010.
Website: www.covantaholding.com
