Benzinga | Jul 14, 2021 11:56AM EDT

EQT Infrastructure Acquires Covanta Holding For $20.25/Share Or $5.3B

* Covanta Holding Corp (NYSE:CVA) has agreed to be acquired by EQT Infrastructure for $20.25 per share. The purchase price represents an approximately 37% premium to Covanta's share price of $14.78 on June 8th, 2021, and a 9% premium to the $18.57 closing price on July 13th, 2021.

* The transaction is valued at $5.3 billion, including the assumption of Covanta's net debt obligation, and is expected to close by year-end.

* Covanta's three diversified and complementary business segments comprise waste processing and services, energy production, and metals recycling. The company is expected to generate an adjusted EBITDA of approximately $460 million to $480 million in 2021.

* This acquisition aligns directly with EQT's thematic approach of investing in sustainable businesses that positively impact society. Under EQT's ownership, Covanta will continue to differentiate its service offerings, focusing on innovation and sustainable energy.

* Price action: CVA shares are trading higher by 7.22% at $19.91 on the last check Wednesday.