Houlihan Lokey Advises Covanta

Houlihan Lokey is pleased to announce that Covanta Holding Corp. (Covanta; NYSE:CVA) has been acquired by EQT Infrastructure (EQT) for $20.25 per share of common stock, representing an approximately 37% premium to Covanta's unaffected share price and corresponding to an enterprise value of approximately $5.3 billion, including debt. The transaction closed on November 30, 2021.

Headquartered in Morristown, New Jersey, Covanta is the world’s largest waste-to-energy provider and leader in sustainable waste and energy solutions. With over 75 facilities in the United States, Canada, and Europe, Covanta works with federal, municipal, and commercial clients to ensure no waste is ever wasted through recovering, recycling, and reimagining the byproducts of our daily lives. Annually, Covanta processes approximately 21 million tons of waste and converts it into renewable electricity, powering over 1 million homes.

EQT is a purpose-driven global investment organization with more than Eur67 billion in assets under management across 26 active funds. EQT funds have portfolio companies in Europe, the Asia-Pacific, and the Americas with total sales of approximately Eur29 billion and more than 175,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence, and market leadership.

As a part of Covanta’s public announcement of a strategic review in October 2020, Houlihan Lokey was engaged to serve as exclusive financial advisor for Covanta regarding strategic alternatives for its Covanta Environmental Solutions division. Ultimately, Covanta’s board of directors determined that the value-maximizing alternative for Covanta shareholders would be achieved through a sale of the entire company. This transaction highlights Houlihan Lokey’s market-leading position in the environmental services sector.