Covanta to acquire $ 450-M energy-from-waste facilities
Covanta said it expects to add approximately $60 million to its cash flow during 2010 because of the acquisition. Image sourced from STOCKXPERTEnergy-from-waste leader Covanta Holding Corporation said it has signed an agreement to acquire most of the North American operations of a subsidiary of Veolia Environmental Services, the world’s largest waste services company.
In a press release issued Monday, July 6, 2009, Covanta said the purchase price of $450 million for the seven business operations will be paid in cash, less net debts and minority interests.
Covanta said under the agreement, it will acquire Veolia Environmental Services North America Corp.’s waste-to-energy operations in Long Beach, California; Dade, Florida; Dutchess and Islip, New York; Montgomery and York, Pennsylvania; and Vancouver in Canada.
Each operation’s capacity ranges from 450 to 3,000 tons of waste per day in Dutchess and Dade, respectively.
Covanta, based in Fairfield, New Jersey, owns and operates 38 large-scale energy-from-waste facilities converting some 17 million tons of waste into over eight million megawatt-hours of power annually.
The company said it expects to add approximately $60 million to its cash flow during 2010 because of the acquisition.
Covanta was trading at $16.64 apiece as of New York Stock Exchange closing yesterday.
- Eric Dorente
Source:
1 http://www.covantaholding.com/site/news-2009/july-6,-2009---covanta-to-acquire...