Global investment organization EQT announced the acquisition by EQT Infrastructure V of waste-to-energy company Covanta for $20.25 per share, in a deal valued at $5.3 billion, including the assumption of debt.

Headquartered in Morristown, NJ, Covanta is a leading provider of waste-to-energy solutions, operating over 40 facilities that process approximately 21 million tons of waste from municipalities and businesses and convert it into renewable electricity to power over one million homes, as well as recycling 600,000 tons of metal, and providing comprehensive industrial material management services to companies.

Alex Darden, Partner within EQT Infrastructure’s Advisory Team, said:

“EQT and Covanta are proven business leaders who share a like-minded approach to environmental stewardship, and this acquisition aligns directly with EQT’s thematic approach of investing in sustainable businesses that have a positive impact on society. EQT is excited to partner with the entire Covanta team and to invest in organizational, operational and digital technology initiatives that will enhance Covanta’s ability to provide sustainable solutions to growing waste challenges. As a responsible investor, EQT is committed to working with Covanta on transforming and supporting the energy transition and circular economy across its local communities.”

EQT stated that it is committed to working closely with Covanta, providing both capital and operational support, including growing the company’s team, realizing near-term operational upgrades, enhancing customer partnerships. Covanta’s growth plans include its UK project pipeline of new waste-to-energy infrastructure and Covanta’s platform of customized environmental solutions.

Michael Ranger, Covanta President and CEO said:

“As an organization dedicated to sustainability and environmental stewardship, EQT shares our vision for a safer, cleaner and more prosperous future through sustainable waste management thereby ensuring no waste is ever wasted. We couldn’t ask for a better partner as we embark on this next phase of our company’s evolution, delivering on our goal of building a sustainable future for all stakeholders.”