Covanta buying EnergyAnswers for $61M

New Jersey-based Covanta (NYSE: CVA), a waste and energy services company, announced a deal today to acquire the operating businesses of Albany, N.Y.'s EnergyAnswers.

The $61 million cash and debt transaction includes two waste to energy facilities in Massachusetts.

"This acquisition fits nicely with our core strengths, and will expand our network of EfW and waste management assets in the Northeast, strategically positioning us to better serve markets in this region," said Anthony Orlando, Covanta's president and CEO.

Covanta said the acquired assets include a 400 tons per day waste to energy plant in Springfield, Mass., and a 240 tons per day facility in Pittsfield, Mass. The company said 75 percent of waste revenues are contracted for these facilities.

The EnergyAnswers operations that Covanta grabbed also include a landfill operation in Springfield which is used for ash disposal.

Covanta is also getting two transfer stations, one in Canaan, N.Y., permitted to transfer 600 tons per day of waste, and the other located at the Springfield waste to energy plant, permitted to transfer 500 tons per day.

A waste transportation and small collections business operated in connection with the acquired facilities, and a wood and yard waste recycling operation on Cape Cod are also part of the acquisition.

Covanta said today's deal, which is subject to customary closing conditions, is expected to be completed during the fourth quarter of 2007.