EQT to acquire Covanta

By Erin Voegele | July 14, 2021

Covanta Holding Corp., the world’s leading waste-to-energy provider, announced on July 14 it will be acquired by EQT Infrastructure. The $5.3 billion transaction is expected to close by the end of the year.

Under the agreement, EQT will acquire all shares of Covanta common stock for $20.25 per share.

Covanta, headquartered in Morristown, New Jersey, has 41 waste-to-energy facilities located in key metropolitan areas of the U.S., Canada, and Europe. EQT said Covanta and its nearly 4,000 full time team members convert approximately 21 million tons of waste into approximately 10 terawatt hours (TWh) of baseload electricity annually, enough to power more than 1 million homes.

The acquisition is related to Covanta’s strategic review, which was announced earlier this year.

“We are pleased to announce this agreement with EQT,” said Michael Ranger, Covanta president and CEO. “Our comprehensive analysis during the past nine months has been singularly focused 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 for a safer, cleaner and more prosperous future through sustainable waste management thereby ensuring no waste is ever wasted. We couldn’t ask for a better partner as we embark on this next phase of our company’s evolution, delivering on our goal of building a sustainable future for all stakeholders.”

Following completion of the acquisition, Covanta said EQT will work with the company’s management team to build upon its impressive strengths including its portfolio of assets that provide essential waste services to municipalities and commercial customers, its long-term community relationships, as well as its numerous growth opportunities, including through a robust U.K. project pipeline of new waste-to-energy infrastructure and Covanta’s Environmental Solutions platform. Covanta will maintain its corporate headquarters in Morristown, New Jersey and its management team is expected to remain in place.

The transaction is subject to customary conditions and approvals and is expected to close by the end of 2021.