The businesses consist of the operating contracts associated with six energy-from-waste (EfW) businesses, ownership and operation of a seventh EfW facility located in Montgomery county, Pennsylvania, and one transfer station, also located in Pennsylvania.
Each of the businesses acquired includes an operating contract with the respective municipal client. As previously reported, the aggregate purchase price for the businesses acquired was $450m and the acquisition is expected to contribute approximately $60m of operating cash flow during 2010.
Covanta’s portfolio includes operation of 45 EfW facilities that annually convert approximately 20 million tons of municipal solid waste annually into renewable energy.
Anthony Orlando, president and CEO of Covanta, said: “We’re delighted to have Miami-Dade as a new client and we welcome the facility’s employees into the Covanta family. Integration of the earlier stage of this acquisition is progressing smoothly and we’re eager to partner with our Miami-Dade client to implement a work plan to enhance the performance of this large facility.
“This transaction is a perfect illustration of one facet of our growth strategy: making acquisitions that leverage our operating expertise and industry-leading Energy-from-Waste portfolio to create value for clients and shareholders.”
