Date: September 10, 2007
Source: Covanta Holding Corporation
Covanta Announces Acquisition of EnergyAnswers' Operating Business
Acquisition Adds Two Energy-from-Waste Facilities, Expands Covanta's Northeast Presence, and Reflects Company's Continued Growth
Covanta Holding Corporation (NYSE: CVA), a world leader in the development and operation of large scale Energy-from-Waste (EfW) and renewable energy projects, today announced its agreement to purchase the operating businesses of EnergyAnswers Corporation ("EnergyAnswers"), which includes two EfW facilities in Massachusetts as well as several ancillary businesses.
"We are very pleased to add these operations to our growing portfolio," said Anthony Orlando, Covanta's President and Chief Executive Officer. "At Covanta, we are committed to providing our communities with safe and efficient waste disposal and clean, renewable energy. This acquisition fits nicely with our core strengths, and will expand our network of EfW and waste management assets in the Northeast, strategically positioning us to better serve markets in this region."
The acquired assets include a 400 tons-per-day EfW facility located in Springfield, MA, and a 240 tons-per-day EfW facility located in Pittsfield, MA. Approximately 75 percent of waste revenues are contracted for these facilities. In addition, Covanta is acquiring businesses that include:
a landfill operation in Springfield, MA, which is used for ash disposal
two transfer stations, one in Canaan, NY, permitted to transfer 600 tons-per-day of waste, and the other located at the Springfield EfW facility, permitted to transfer 500 tons-per-day;
a waste transportation and small collections business operated in connection with the acquired facilities, and
a wood and yard waste recycling operation on Cape Cod, MA
Covanta has agreed to acquire EnergyAnswers' businesses for cash and assumption of debt totaling $61 million, subject to working capital adjustments. The acquisition, which is subject to customary conditions to closing, is expected to close during the fourth quarter of 2007.
About Covanta
Covanta is an internationally recognized owner and operator of Energy-from-Waste and renewable energy projects. Covanta's Energy-from-Waste facilities convert municipal solid waste into renewable energy for numerous communities, predominantly in the United States. As a premier operator of large-scale Energy-from-Waste facilities, Covanta is proud to offer an environmentally sound solution to communities' solid waste disposal needs. With over 30 facilities worldwide, Covanta uses municipal solid waste as a fuel to generate clean, renewable energy. Covanta's modern Energy-from-Waste facilities safely and securely turn 15 million tons of waste into over 8 million megawatt hours of clean renewable electricity each year and create 10 billion pounds of steam that are sold to a variety of industries. For more information, visit www.covantaenergy.com.
For more information generally, please contact:
Gavin Bell
Covanta Holding Corporation
973-882-7107
gbell@covantaenergy.com.
For media inquiries, please contact:
Derek Porter
Covanta Holding Corporation
703-236-2817
dporter@covantaenergy.com.
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