Danielson Agrees to Purchase American Ref-Fuel

Montvale, N.J. – Chicago-based insurance company Danielson Holding Corp. has agreed to buy American Ref Fuel, Montvale, N.J., which owns waste-to-energy facilities in the northeastern United States, for $740 million plus $1.2 billion in assumed debt. Danielson made the purchase to expand its waste disposal arm, Covanta Energy Corp., which operates 25 waste-to-energy facilities in 14 states. The deal is supposed to close in the second quarter of 2005.