This morning, EQT Infrastructure (EQT), part of purpose-driven global investment organization EQT Group, announced that it has agreed to acquire New Jersey-based Covanta Holding Corporation (CVA) for $5.3B. Covanta is the largest owner and operator of waste-to-energy (WTE) facilities in North America, with approximately 75% market share.

Covanta’s Board of Directors unanimously approved the agreement, and that shareholders will receive $20.25 in cash per share of Covanta's common stock. The purchase price is said to represent a 37% premium to Covanta’s unaffected share price on June 8th, the day prior to initial media speculation of a transaction.

Michael Ranger, Covanta president and CEO, noted that, “We couldn’t ask for a better partner as we embark on this next phase of our company’s evolution, delivering on our goal of building a sustainable future for all stakeholders.”

Of the acquisition, Alex Darden, Partner within EQT Infrastructure’s Advisory Team, said, “EQT and Covanta are proven business leaders who share a like-minded approach to environmental stewardship, and this acquisition aligns directly with EQT’s thematic approach of investing in sustainable businesses that have a positive impact on society.” And, “As a responsible investor, EQT is committed to working with Covanta on transforming and supporting the energy transition and circular economy across its local communities.”

EQT says it plans to invest in organizational, operational, and digital technology initiatives that will enhance its ability to provide sustainable solutions to growing waste challenges. The company notes that, “Covanta will continue to differentiate its service offerings, with a focus on innovation and sustainable energy. EQT is committed to growing Covanta’s team, realizing near-term operational upgrades, enhancing customer partnerships and building greater trust and understanding with the communities that Covanta serves.”

This news comes after Covanta announced last fall that it was doing a strategic review of its capital structure and operations.