This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Green Energy Alert: Covanta Buys Veolia Ops

Stocks in this article: CVA VE

Solar and wind companies might get the splashy headlines in the renewable energy space, but companies that burn trash to make a living just keep trucking along too.

And today, Covanta (CVA - Get Report), which operates 38 energy-from-waste facilities, said it reached a deal to buy nearly all of the EfW operations from the North American unit of Veolia Environment (VE).

According to a press release, the Fairfield, New Jersey-based Covanta said it will pay, in all, $450 million in cash for facilities in California, Florida, New York, Pennsylvania and Vancouver. On an annual basis, the seven facilities produce 3 million tons of waste.

According to the release, the deal is expected to be accretive to Covanta and will also add around $60 million in operating cash flow next year. Covanta, which also said that it doesn't expect to cut jobs at the sites, anticipates the entire deal to close by the end of the year, though that timeline may be dictated by regulatory hurdles and other approvals.

"We are extremely pleased to announce this acquisition, which is consistent with our growth strategy targeting Energy-from-Waste development projects and acquisitions in key markets," Covanta President and CEO Anthony Orlando said. "We look forward to welcoming new customers and employees into the Covanta family and working closely with each client community to build on and improve the service provided."

In May, Covanta priced a $400 million private offering .

After surging briefly, shares of Covanta were down 1.2% in the morning following the announcement. Veolia was also changing hands in the red, down 0.7%.

Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs