EQT Infrastructure’s $5.3 Billion Acquisition of Covanta Holding Corporation

Kirkland & Ellis advised EQT on the deal, while Debevoise & Plimpton advised Covanta Holding Corporation. Fried Frank acted as counsel to BofA Securities as financial advisor to Covanta.

EQT Infrastructure has agreed to acquire Covanta Holding Corporation (“Covanta” or the “Company”) (NYSE: CVA), an owner and operator of Waste-to-Energy (“WtE”) facilities in North America. Under the terms of the agreement, which was unanimously approved by Covanta’s Board of Directors, shareholders will receive USD 20.25 in cash per share of Covanta’s common stock in a transaction valued at USD 5.3 billion, including the assumption of Covanta’s net debt obligations. The purchase price represents a 37 percent premium to Covanta’s unaffected share price of USD 14.86 on June 8th, the day prior to initial media speculation of a transaction.

EQT is a purpose-driven global investment organization with more than EUR 67 billion in assets under management across 26 active funds. EQT funds have portfolio companies in Europe, Asia-Pacific and the Americas with total sales of approximately EUR 29 billion and more than 175,000 employees. 

Covanta is a world leader in providing sustainable waste and energy solutions. Annually, Covanta’s modern Waste-to-Energy (“WtE”) facilities safely convert approximately 21 million tons of waste from municipalities and businesses into clean, renewable electricity to power one million homes and recycle 600,000 tons of metal. 

The Kirkland team was led by corporate partners Jai Agrawal (Picture), David Feirstein, Romain Dambre, Sarkis Jebejian and Kristin Mendoza and associate Alexandra Gallogly, and debt finance partners Ashley Gregory and Brett Pallin.   

The Debevoise team was led by M&A partners Jonathan Levitsky and William Regner and included partner Ezra Borut, counsel Molly Stockley and associates Marisa Demko, John Love, Daniel Randazzo and Michael Stephan, finance partner Sunil Savkar and associate Lee Henderson, benefits partner Meir Katz and associates Matthew Trudeau and Spencer Mizerak, tax partner Peter Furci, capital markets partner Steven Slutzky and associates Javaad Ali and John Jacob, antitrust partners Ted Hassi and Timothy McIver and associate Kayleigh Anderson, litigation associate Adam Saunders and environmental counsel Stuart Hammer.

The Fried Frank team was led by corporate partner Roy Tannenbaum and included corporate partner Philip Richter and corporate associate Christian Abouchaker.

Involved fees earner: Javaad Ali – Debevoise & Plimpton; Kayleigh Anderson – Debevoise & Plimpton; Ezra Borut – Debevoise & Plimpton; Marisa Demko – Debevoise & Plimpton; Peter Furci – Debevoise & Plimpton; Stuart Hammer – Debevoise & Plimpton; Ted Hassi – Debevoise & Plimpton; Lee Henderson – Debevoise & Plimpton; Meir Katz – Debevoise & Plimpton; Jonathan Levitsky – Debevoise & Plimpton; John Love – Debevoise & Plimpton; Timothy McIver – Debevoise & Plimpton; Spencer Mizerak – Debevoise & Plimpton; Daniel Randazzo – Debevoise & Plimpton; William Regner – Debevoise & Plimpton; Adam Saunders – Debevoise & Plimpton; Sunil William Savkar – Debevoise & Plimpton; Steven Slutzky – Debevoise & Plimpton; Michael Stephan – Debevoise & Plimpton; Molly Stockley – Debevoise & Plimpton; Christian Abouchaker – Fried Frank Harris Shriver & Jacobson; Philip Richter – Fried Frank Harris Shriver & Jacobson; Roy Tannenbaum – Fried Frank Harris Shriver & Jacobson; Jai Agrawal – Kirkland & Ellis; Romain Dambre – Kirkland & Ellis; David Feirstein – Kirkland & Ellis; Alexandra Gallogly – Kirkland & Ellis; Ashley Gregory – Kirkland & Ellis; Sarkis Jebejian – Kirkland & Ellis; Kristin Mendoza – Kirkland & Ellis; Brett Pallin – Kirkland & Ellis;

Law Firms: Debevoise & Plimpton; Fried Frank Harris Shriver & Jacobson; Kirkland & Ellis;

Clients: Covanta Energy; Covanta Holding Corporation; EQT Infrastructure;