13:58 | 06.07.2009
Covanta to Acquire Veolia’s North American Energy From Waste Business
FAIRFIELD, New Jersey, July 6 /PRNewswire/ —
Covanta Holding Corporation (NYSE: CVA), a world leader in the
development, ownership and operation of Energy-from-Waste (EfW) facilities
and other renewable energy projects, today announced that it has signed a
definitive agreement to acquire from Veolia Environmental Services North
America Corp., most of its North American EfW business.
The transaction is expected to be accretive to Covanta. The purchase
price of US$450 million, less net debt and minority interests (subject to
certain other adjustments) will be paid in cash.
The Energy-from-Waste operations to be acquired consist of the following:
Facility: Location: Capacity:
1. Long Beach CA 1,380 TPD
2. Dade FL 3,000 TPD
3. Dutchess NY 450 TPD
4. Islip NY 486 TPD
5. Montgomery PA 1,200 TPD
6. York PA 1,344 TPD
7. Vancouver Canada 800 TPD
We expect the entire transaction will close by year end. However, the
closing of the transaction may occur in stages and is conditioned upon
receipt of customary regulatory and other approvals or consents. The failure
to obtain certain approvals or consents may result in the removal of certain
businesses from the transaction and a related price reduction.
An Attractive Acquisition
Each of the seven EfW businesses to be acquired includes a long-term
operating contract with the respective municipal client. In addition, we will
acquire a majority ownership stake in the Montgomery PA facility and a
related transfer station operating contract. Collectively, these 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 expects it will achieve meaningful synergies by leveraging its
scale, operational expertise and in-house maintenance capabilities. Force
reductions are not anticipated at the operating facilities, which employ
approximately 500 people. This acquisition is expected to add approximately
US$60 million of operating cash flow during 2010.
Anthony Orlando, President and CEO of Covanta stated “We are extremely
pleased to announce this acquisition which is consistent with our growth
strategy targeting Energy-from-Waste development projects and acquisitions in
key markets. We look forward to welcoming new customers and employees into
the Covanta family and working closely with each client community to build on
and improve the service provided.”
Advisors to Covanta
La Compagnie Financiere Edmond de Rothschild (Paris) and Latham & Watkins
LLP (New York) served as financial and legal advisors, respectively, to
Covanta in connection with this transaction.
About Covanta
Covanta Holding Corporation (NYSE: CVA), is an internationally recognized
owner and operator of large-scale Energy-from-Waste and renewable energy
projects and a recipient of the Energy Innovator Award from the U.S.
Department of Energy’s Office of Energy Efficiency and Renewable Energy.
Covanta’s 38 Energy-from-Waste facilities provide communities with an
environmentally sound solution to their solid waste disposal needs by using
that municipal solid waste to generate clean, renewable energy. Annually,
Covanta’s modern Energy-from-Waste facilities safely and securely convert
approximately 17 million tons of waste into more than 8 million megawatt
hours of clean renewable electricity and create 10 billion pounds of steam
that are sold to a variety of industries. For more information, visit
www.covantaholding.com.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release may constitute “forward-looking”
statements as defined in Section 27A of the Securities Act of 1933 (the
“Securities Act”), Section 21E of the Securities Exchange Act of 1934 (the
“Exchange Act”), the Private Securities Litigation Reform Act of 1995 (the
“PSLRA”) or in releases made by the Securities and Exchange Commission
(”SEC”), all as may be amended from time to time. Such forward-looking
statements involve known and unknown risks, uncertainties and other important
factors that could cause the actual results, performance or achievements of
Covanta and its subsidiaries, or general industry or broader economic
performance in domestic and international markets in which Covanta operates
or competes, to differ materially from any future results, performance or
achievements expressed or implied by such forward-looking statements.
Statements that are not historical fact are forward-looking statements.
Forward-looking statements can be identified by, among other things, the use
of forward-looking language, such as the words “plan,” “believe,” “expect,”
“anticipate,” “intend,” “estimate,” “project,” “may,” “will,” “would,”
“could,” “should,” “seeks,” or “scheduled to,” or other similar words, or the
negative of these terms or other variations of these terms or comparable
language, or by discussion of strategy or intentions. These cautionary
statements are being made pursuant to the Securities Act, the Exchange Act
and the PSLRA with the intention of obtaining the benefits of the “safe
harbor” provisions of such laws. Covanta cautions investors that any
forward-looking statements made by Covanta are not guarantees or indicative
of future performance. Important assumptions and other important factors that
could cause actual results to differ materially from those forward-looking
statements with respect to Covanta, include, but are not limited to, the risk
that Covanta may not acquire all seven of the EfW businesses in the event
that certain consents and approvals are not obtained and those factors, risks
and uncertainties that are described in periodic securities filings by
Covanta with the SEC. Although Covanta believes that its plans, intentions
and expectations reflected in or suggested by such forward-looking statements
are reasonable, actual results could differ materially from a projection or
assumption in any forward-looking statements. Covanta’s future financial
condition and results of operations, as well as any forward-looking
statements, are subject to change and inherent risks and uncertainties. The
forward-looking statements contained in this press release are made only as
of the date hereof and Covanta does not have or undertake any obligation to
update or revise any forward-looking statements whether as a result of new
information, subsequent events or otherwise, unless otherwise required by
law.
Covanta Holding Corporation
Marisa F. Jacobs, Esq., Vice President, Investor Relations and Corporate Communications, +1-973-882-4196, or Vera Carley, Director, Media Relations and Corporate Communications, +1-973-882-2439, both of Covanta Holding Corporation
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