Covanta Holding Corp. has bought the Delaware Valley Resource Recovery Facility in Chester, Pa., from GE Energy Financial Services for $94 million.
"Acquiring ownership of the Delaware Valley facility is a smart financial transaction for us,” said Anthony Orlando, president and CEO of the Morristown, N.J.-based Covanta, in a news release. “In addition, we will now enjoy the benefit of ownership which we believe will open new opportunities and strengthen our client relationship with the Delaware County Solid Waste Authority."
Covanta has operated the Delaware Valley facility, previously leasing it from GE EFS. The facility has a processing capacity of about 2,700 tons per day, providing waste management service to Delaware County, Pa., and surrounding communities.
The cash transaction includes the acquisition of approximately $122 million cash collateral trust and the assumption of $64 million in facility project debt principal. The purchase was funded from cash on hand and available liquidity under the Covanta’s revolving credit facility.