Covanta increases ownership of four waste-to-energy facilities

New Jersey-based Covanta, a portfolio company of EQT Partners, Stockholm, Sweden, has announced that it has increased its ownership stake in four waste-to-energy facilities in the United Kingdom. 

According to a news release, the company increased its ownership stake in Covanta Green U.K. Ltd., Covanta Green Jersey Assets Ltd. and Covanta Green Protos Holding Ltd., which holds ownership stakes across four waste-to-energy facilities.  

The facilities are owned through EQT Infrastructure's acquisition of Green Investment Group's 50 percent stake in those entities. Covanta says the purchase price and follow-on equity requirements to finalize construction will be funded by EQT Infrastructure. 

"We are delighted with EQT's support for Covanta's next phase of growth,” says Owner Michaelson, CEO and president of Covanta Europe. “The acquisition will simplify the UK operations and increase our contribution to end-of-line waste for thermal recycling.” 

The company says the acquisitions will streamline Covanta's UK facilities. It’s also an opportunity to consolidate Covanta's contribution of thermal recycling to UK circular economy targets and drive for sustainable waste processing of nonrecyclable waste aligned to the waste hierarchy. 

EQT Infrastructure says it will leverage its experience and demonstrated operational capabilities in the sector to accelerate Covanta's expansion in Europe towards becoming a leading sustainable provider of waste management services. 

The transaction is subject to customary closing conditions and approvals and is expected to close in Q2 2022. Barclays Bank, acting through its investment bank, acted as financial adviser and Kirkland & Ellis LLP acted as legal counsel to EQT Infrastructure in connection with the transaction.