I Squared Capital to Acquire VLS Environmental Solutions, a Leading Sustainability Solutions and ESG-Friendly Waste Services Company in North America, From Aurora Capital Partners

Aurora Capital

MIAMI–(BUSINESS WIRE)–I Squared Capital, a leading global infrastructure investment manager, announced today that it has signed a definitive agreement, through its ISQ Global Infrastructure Fund III, to acquire VLS Environmental Solutions (“VLS”) from Aurora Capital Partners, a leading middle-market private equity firm. VLS provides mission-critical, customized waste and specialty cleaning and repair services to a variety of highly regulated industries in North America. Financial terms of the transaction were not disclosed.

VLS operates two principal segments: non-hazardous industrial waste handling, treatment, and sustainable disposal, as well as rail and marine specialty cleaning and repair. As one of the only nationwide providers of ESG-friendly industrial waste solutions, the company’s sustainable disposal solutions are especially attractive for customers with zero-waste-to-landfill initiatives. The company offers a comprehensive set of waste management solutions that process industrial non-hazardous waste to create alternative engineered fuels for industrial processes, fuel for waste-to-energy generation, treated wastewater, and landfill solidification.

The transaction is expected to close in the third quarter of 2022, subject to customary regulatory approvals.

Houlihan Lokey served as lead financial advisor, Robert W. Baird served as co-financial advisor, and Gibson, Dunn & Crutcher LLP served as legal advisor to Aurora Capital Partners. Jefferies LLC served as exclusive financial advisor and Kirkland & Ellis LLP served as legal advisor to I Squared Capital.

About I Squared Capital

I Squared Capital is an independent global infrastructure investment manager with over $36 billion in assets under management focusing on energy, environmental infrastructure, utilities, digital infrastructure, transport and social infrastructure in North America, Europe, Latin America and Asia. Headquartered in Miami, the firm has offices in Hong Kong, London, New Delhi, Singapore and Taipei.

About Aurora Capital Partners

Aurora Capital Partners is a leading Los Angeles-based private equity firm with over $4.5 billion in assets under management. Founded in 1991, the firm focuses principally on control investments in middle-market companies with leading market positions, stable industry dynamics, attractive business model characteristics and actionable opportunities for growth in partnership with management. Aurora provides unique resources to its portfolio companies through its Strategy & Operations Program and its team of experienced operating advisors. Aurora’s investors include leading public and corporate pension funds, endowments and foundations active in private equity investing. For more information about Aurora Capital Partners, visit: www.auroracap.com.

About VLS Environmental Solutions

VLS’ Waste division provides customized waste processing solutions for non-hazardous industrial and commercial waste, including landfill diversion and sustainability programs, solidification of liquid waste, recycling, and wastewater treatment. The company’s Railcar Cleaning division provides specialty cleaning services for difficult-to-clean products including chemicals, hardened materials and pressurized gases using the most environmentally friendly and safe processes in the industry. Also, the company’s Marine division has state-of-the-art barge cleaning and repair facilities for a wide variety of petroleum and chemical solvents. Today, VLS has over 800 employees in 28 locations across the country. For more information about VLS, visit: www.vlses.com.

Contacts
I Squared Capital

Investors
Andreas Moon, Partner and Head of Investor Relations
+1 (786) 693-5739 | andreas.moon@isquaredcapital.com

Media
Brunswick Group
Clare Pickett
+1 (347) 477-7475
ISQUARED@brunswickgroup.com

Aurora Capital Partners
ASC Advisors
Steve Bruce / Taylor Ingraham
+1 (203) 992-1230
sbruce@ascadvisors.com / tingraham@ascadvisors.com

I SQUARED CAPITAL
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Contacts
I Squared Capital

Investors
Andreas Moon, Partner and Head of Investor Relations
+1 (786) 693-5739 | andreas.moon@isquaredcapital.com

Media
Brunswick Group
Clare Pickett
+1 (347) 477-7475
ISQUARED@brunswickgroup.com

Aurora Capital Partners
ASC Advisors
Steve Bruce / Taylor Ingraham
+1 (203) 992-1230
sbruce@ascadvisors.com / tingraham@ascadvisors.com

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InfraVia Capital Partners (“InfraVia”) has signed an agreement with Waterland Private Equity (“Waterland”) to acquire a majority stake in Blue Phoenix Group

InfraVia

InfraVia Capital Partners (“InfraVia”) has signed an agreement with Waterland Private Equity (“Waterland”) to acquire a majority stake in Blue Phoenix Group (“BPG”), a leading player in waste recycling infrastructure. Daiwa International Capital Partners (“Daiwa ICP”) will roll-over its current stake alongside InfraVia. With the support of InfraVia as a new controlling shareholder and Daiwa ICP, Blue Phoenix will accelerate its growth with the ambition to further strengthen its role as global leader in incinerator bottom ash (“IBA”) processing.

Blue Phoenix Group ́s facilities provide integrated sustainable solutions to the energy-from-waste (“EfW”) sector for treatment and recycling of bottom ash that remains after waste incineration. The company is recognized as critical infrastructure in the waste value chain by diverting the EfWs’ waste products from landfill and recycling it into usable products. Waterland has been the main shareholder of the Company since 2015 and has developed BPG to become a global player with more than 25 ash recycling facilities worldwide. With the support of InfraVia as a new majority shareholder next to Daiwa ICP, the Company will be able to further focus on its international expansion strategy of servicing EfW companies with sustainable solutions for recycling Incinerator Bottom Ash.

Paul Knight, CEO of Blue Phoenix Group said: “I am very pleased to start a long-term partnership with InfraVia with whom we share the same vision for the business, and which will allow us to accelerate our growth outside our core countries, pursue improvement in our existing business as well as invest further in developing sustainable solutions for the waste management supply chain.

Hans Scheepers, Managing Partner at Waterland said “We are proud to have supported the company over the last 7 years and to help form and further expand BPG. We have provided BPG with resources to successfully grow and develop the business. We are convinced that InfraVia and Daiwa will continue to support the development of the company and drive the waste supply chain towards more recycling.”

Bruno Candès, Partner at InfraVia Capital Partners said “We are very pleased to invest in Blue Phoenix Group alongside Daiwa ICP and are impressed by the company’s achievements under its previous ownership. Recycling and processing plants are critical infrastructure to move the waste supply chain towards a more circular model. We are attracted by the long-term trends of the business and the growing demand for sustainable and circular economy infrastructure in particular as our economies are accelerating their phase-out from landfilling. We look forward to working with the management to grow the business and expand what is already a great platform”.

The terms of the transaction are not disclosed and the closing of the transaction is subject to the receipt of customary regulatory approvals. Blue Phoenix Group and Waterland were advised by Macquarie Capital (financial adviser) and Allen & Overy (legal). InfraVia was advised by Natixis Partners and Emendo Capital (financial adviser) and Clifford Chance (legal).

PRESS CONTACTS

INFRAVIA
Vincent LEVITA Founder and CEO
vlevita@infraviacapital.com
+33 (0)1 40 68 17 38

TADDEO
Antoine Denry
antoine.denry@taddeo.fr
+33 (0) 6 18 07 83 27

WATERLAND
Rinaldo Rosendaal, Associate Principal
rosendaal@waterland.nu
+31 (0)6 31 79 95 33

BLUE PHOENIX
Amy Townsend
amy.townsend@bluephoenix-group.com
+31 (0)6 51 17 39 26

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Sortera acquires O’Donovan Waste Disposal Ltd in London and strengthens its international presence

Nordic Capital

Sortera continues to grow internationally and is now acquiring a new company through O’Donovan Waste Disposal Ltd, one of the leading companies in London in collection and recycling of construction waste, with about 100 employees.

The acquisition of O’Donovan is the first in U.K and is part of Sortera´s effort to expand in Europe’s major cities and to become one of Europe’s leading companies in collection and recycling of construction waste.

“We are very happy to now join forces with O´Donovan. For a long time, they have carried out impressive work, to become one of the leading and most prominent construction recyclers in London. O´Donovan has a strong customer focus and their systematic work with environment and health and safety has resulted in several prestigious awards, as well as a strong reputation among both customers and employees. I am proud to grow Sortera with a company who share our values of strong customer focus and a sustainable approach to business. We wish all employees at O´Donovan a warm welcome to the Sortera family”, says Sebastian Wessman, CEO of Sortera.

“I look forward to continuing to develop our business in the UK with Sortera as a strong owner who understands and appreciates our work with sustainability, quality and health and safety. Sortera will give us the right preconditions to continue our successful development path and to enable new investments and development initiatives”, says Jacqueline O’Donovan, Managing Director of O’Donovan.

The acquisition of O’Donovan marks an important milestone in Sortera’s history and is an important step to realize our strategy and ambition to become a leading construction recycling company in Europe. O’Donovan is part of Sortera from 2 June 2022. This is Sortera’s 17th acquisition since it was established in 2006. With the new acquisition, Sortera´s new turnover will increase to SEK 2 billion.

ABOUT O´DONOVAN
O’Donovan Waste Disposal Ltd is an award winning, independent, family-run company with the aim of leading the way in safe, green, and efficient waste operations. O´Donovan started the company in London in 1959 and has a turnover of approximately SEK 200 million. O’Donovan has operations in west of London, Alperton and Tottenham. https://www.odonovan.co.uk/

ABOUT SORTERA
Sortera is a leading company with a strong Nordic heritage within collection, recycling, processing and sale of residual products of construction waste. Sortera provides solutions that contribute to increased sustainability and improved environmental performance in all areas. With more than 500 employees and a turnover of SEK 2 billion, Sortera covers the entire value chain from collection, sorting, treatment and disposal. Every day, Sortera performs services that make a difference to the environment for thousands of companies and individuals in northern Europe. www.sortera.se/com

For more information, please contact Sebastian Wessman, CEO
sebastian.wessman@sortera.se
+46 72 886 95 97

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RoadRunner Raises $70 Million Series D to Fund National Expansion and Accelerate the Sustainability Solutions of Tomorrow

General Atlantic

Technology-driven sustainable waste management platform aims to revolutionize recycling for businesses across the globe

RoadRunner Recycling, a leader in sustainable waste management challenging the status quo of its industry, today announced the close of a Series D investment of $70 million from BeyondNetZero, the climate investing venture of leading growth equity firm General Atlantic. This new round of funding brings RoadRunner’s total funding to date to $129.5 million.

To date, the company has diverted more than 200K tons of waste from landfill across over 8,000 locations and collectively saved its customers upwards of $50 million on their waste and recycling operations. RoadRunner’s technology platform accurately predicts what volumes of different materials are generated by different industries, and what containers will most efficiently organize these waste and recycling streams. This enables RoadRunner to offer a customized plan that helps streamline waste and recycling operations across a portfolio, ultimately improving recycling rates and making sustainability goals measurable and achievable, all while reducing costs and improving service.

The Series D financing enables RoadRunner to further develop its machine-learning and marketplace technology, grow its enterprise business offering, drive national expansion, and support operations in 40+ U.S. cities—all with the shared goal of furthering positive change in waste and recycling operations for businesses.

“We’re grateful for General Atlantic’s partnership and investment in our mission of developing an innovative and sustainable materials management company built on high-quality technology,” says Graham Rihn, CEO & founder of RoadRunner Recycling. “We believe that this next stage of growth will put RoadRunner on a course to achieve its vision of propelling the entire waste industry toward enduring change that protects our planet and our futures.”

Across the business world, sustainability has increasingly become a strategic priority. With climate change and consumer demand for corporate responsibility at the forefront, organizations can no longer forego a comprehensive strategy, particularly around waste reduction. In the solid waste industry, a market mired by stagnant processes and missed environmental benchmarks, sustainability is now driving the narrative for the first time—and RoadRunner is positioned to win significant market share as the industry leader in comprehensive waste management programs. Since its founding in 2014, RoadRunner has broadened the capabilities of its sustainability marketplace and proprietary technology to make waste management seamless for businesses.

“We founded BeyondNetZero to support innovative growth companies that are producing practical, tech-enabled climate solutions—like RoadRunner—and help them scale so they can accelerate the net-zero transition,” says Michael Bevan, Managing Director on the BeyondNetZero team at General Atlantic. “We are thrilled to partner with RoadRunner and its management team as they strive to make sustainable waste management more affordable and achievable for businesses across the globe.”

“There is a lot of opportunity for growth,” says Rihn, “Oftentimes, waste—and the mismanagement of it—can be an issue that flies under the radar for companies. But with the $80 billion industry reaching a tipping point from lack of innovation for decades, we’re here to show folks there is a better, more efficient way to manage materials and divert waste from landfills while keeping the planet, and your business, top of mind.”

About RoadRunner Recycling

RoadRunner Recycling is on a mission to elevate recycling in a world dominated by waste. The company provides customized and sustainable materials management solutions, supported by technology and engineered to serve thousands of commercial businesses from more than 20 industries across the country. RoadRunner leverages its proprietary technology and expertise to boost cost savings, improve recycling rates, streamline waste operations, and deliver an unparalleled customer experience that drives sustainability for the waste industry, and our world, forward. For more information on RoadRunner and its services visit: https://www.roadrunnerwm.com/

About BeyondNetZero

The BeyondNetZero team seeks to invest in growth companies delivering innovative climate solutions and aims to help them achieve scale. BeyondNetZero looks to identify companies that have the potential to meet and exceed net zero emissions targets, with a focus on decarbonization, energy efficiency, resource conservation and emissions management. BeyondNetZero combines General Atlantic’s growth equity experience with a global team of proven climate investors, advisors and industry executives, including Lord Browne of Madingley, who serves as Chairman of BeyondNetZero. This diverse team of experts brings decades of experience in both addressing climate-focused problems and building pioneering growth companies. For more information on BeyondNetZero, please visit the website: https://beyond-net-zero.com/

About General Atlantic

General Atlantic is a leading global growth equity firm with more than four decades of experience providing capital and strategic support for over 445 growth companies throughout its history. Established in 1980 to partner with visionary entrepreneurs and deliver lasting impact, the firm combines a collaborative global approach, sector specific expertise, a long-term investment horizon and a deep understanding of growth drivers to partner with great entrepreneurs and management teams to scale innovative businesses around the world. General Atlantic currently has over $86 billion in assets under management inclusive of all products as of September 30, 2021, and more than 215 investment professionals based in New York, Amsterdam, Beijing, Hong Kong, Jakarta, London, Mexico City, Mumbai, Munich, Palo Alto, São Paulo, Shanghai, Singapore and Stamford. For more information on General Atlantic, please visit the website: www.generalatlantic.com.

Media Contacts

Mary Armstrong & Casey Gunkel
General Atlantic media@generalatlantic.com

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3i partners with EC Waste to support the company’s growth

3I

3i Group plc (“3i”) today announced that it has closed a majority investment in EC Waste, the largest vertically integrated provider of solid waste services in Puerto Rico. The company’s management team will invest alongside 3i and operations will remain unaffected by the transaction.

With locations throughout Puerto Rico, EC Waste provides multiple waste services to over 80,000 residential, commercial, and industrial customers. The company operates four well-located, U.S. EPA compliant disposal sites, which enables EC Waste to serve all of Puerto Rico in an environmentally sensitive manner. Additionally, the company manages two transfer stations, runs the island’s largest solid waste collections network and hosts what will be Puerto Rico’s largest renewable natural gas collection project at its El Coqui facility.

EC Waste has enough capacity to serve the entire island’s needs for decades ahead as communities and businesses consider moving away from non-compliant providers and towards permitted, fully compliant waste disposal options. Additionally, the company has made significant investments into its infrastructure and operations technology to improve performance and position the company for future growth.

Rob Collins, Managing Partner, 3i North American Infrastructure, commented: “This is the third platform investment for our North American Infrastructure business, following Smarte Carte and Regional Rail. EC Waste has a proven track record of providing top tier services to the communities it operates in across the island. We are delighted to support management in growing the company’s sustainable waste practices, including an expansion of its compliant disposal operations and renewable natural gas collection activities.”

Randy Jensen, CEO, EC Waste, added: “We look forward to working with 3i to further position EC Waste as the leading, sustainable solid waste services provider in Puerto Rico. With its long-term investment horizon, 3i is the ideal partner as we look to expand our operations in support of the island’s environmental and sustainability goals.”

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Covanta and EQT Infrastructure to create the leading sustainable waste solutions provider, driving compelling value for all stakeholders

eqt

EQT Infrastructure completes acquisition of Covanta with first ever sustainability-linked LBO financing in the U.S., with specific KPIs to drive progress

EQT Infrastructure to increase investments across Covanta’s business, including upgrading equipment, investing in host communities, and integrating into more sustainable aspects of waste disposal

Covanta appoints new President & Chief Executive Officer, Azeez Mohammed, who brings decades of industrial and energy transition expertise

Covanta releases 2021 Sustainability Report, highlighting continued progress towards ESG goals and increased community engagement

Covanta

MORRISTOWN, N.J.– November 30, 2021 – Covanta Holding Corporation (“Covanta”), a world leader in sustainable waste and energy solutions, today announced the completion of its $5.3 billion acquisition by the EQT Infrastructure V fund (“EQT Infrastructure”), unveiling its strategy to become the most sustainable provider of waste solutions. Covanta today also announced the appointment of Azeez Mohammed as President & Chief Executive Officer.

Mr. Mohammed will work closely with Covanta’s full team, EQT, and the company’s new Board of Directors to embark on a bold program to generate compelling value for all stakeholders in an increasingly circular economy. As part of this commitment, the deal was completed with the first ever sustainability-linked leveraged buyout (“LBO”) financing in the U.S., featuring environmentally focused KPIs with financial incentives attached to drive meaningful progress.

“I am excited to lead Covanta during this very transformational time,” said Azeez Mohammed, President and Chief Executive Officer at Covanta. “Covanta has been a mainstay in the industry due to its talented team with deep domain experience in the sustainable waste disposal space, robust portfolio of sustainable negative-carbon Waste-to-Energy assets, and growth platform in Covanta Environmental Solutions that provides premium disposal and recycling solutions to broader industrial wastes. Coupled with society’s growing momentum toward decarbonization and pursuit of circular alternatives for managing waste, this creates a compelling value creation story. I look forward to working with our talented team, stellar board, and a growth and sustainable-minded owner in EQT to capitalize on our potential that ensures the preservation of our planet for future generations.”

Strategic Initiatives

Building on Covanta’s strong foundation as a leader in the WTE industry, EQT Infrastructure will increase investments across the business, including:

  1. Leveraging its existing asset base to move higher up the waste value chain by further incorporating recycling, beneficial reuse, and other forms of sustainable waste disposal into its service offering (including building materials and energy feedstocks)
  2. Upgrading equipment at existing plants to reduce emissions (including baghouses and advanced NOx and SOx control)
  3. Furthering investments in host communities (including vocational training programs and environmental undertakings)

Alex Darden, Partner and Head of EQT’s US Infrastructure platform said, “EQT has a proven track record of working with purpose-driven companies that are integral to the energy transition and growing circular economy, and we are very excited to partner with Azeez and the entire Covanta team.” Mr. Darden continued, “As the world faces ever-increasing waste challenges, EQT is committed to investing in critical community, operational, and digital technology initiatives to enhance Covanta’s unique ability to provide sustainable, best-in-class solutions. Under EQT’s ownership, Covanta will continue to differentiate its service offerings, with a focus on innovation and sustainable energy.”

First Ever Sustainability-Linked LBO Financing in the U.S.

Covanta’s sustainability-linked financing framework partners its sustainability strategy with its corporate financial strategy. Under the framework, Covanta pledges to meet two long term goals to increase the total WTE processed, as well as waste recycled to reused materials, by 40 percent by 2030. These long-term goals are underpinned by two accompanying KPIs, which must be met by year-end 2025, compared to a 2020 baseline. The company would face significant financial penalties if it fails to meet the following targets:

  • Demonstrating a cumulative growth of 2.5 percent of sustainably processed waste, which diverts more waste from landfills, therefore avoiding significant methane emissions
  • Showing a 25 percent cumulative growth in waste recycled or reused, which also avoids emissions, as well as supports the development of the circular economy

The KPIs reflect Covanta’s greatest net emissions reduction potential. By leveraging sustainable waste management, Covanta’s facilities generate energy and avoid landfills, which produce methane, a potent greenhouse gas that is responsible for more than a quarter of today’s global warming. Increasing waste recycled or reused optimizes waste output and contributes to the circular economy.

Covanta tracks its long-term sustainability goals and annually publishes a report highlighting its progress and continued commitment to Environmental, Social and Governance initiatives. Alongside today’s closing announcement, Covanta released its 2021 Sustainability Report, which includes 2020 full-year data and in-depth analysis. Reported progress includes reduced greenhouse gas emissions, more waste diverted from landfills and expanded company-wide employee resource groups.

New President & CEO Azeez Mohammed

Mr. Mohammed brings over 24 years of leadership experience at large global business units, including at major industrial companies. Most recently, he served as Executive Vice President at Bloom Energy where he was responsible for helping countries and customers make the transition from a fossil fuel to a renewable hydrogen economy. Prior to this position, he served as President & CEO of multiple Power & Energy oriented business units within GE including GE Power Conversion, GE Power and GE Energy Services. His scope included P&L responsibilities for units of several billions of dollars, thousands of employees and a large global footprint. He has broad functional expertise in technology, finance, and operations and has worked in dozens of different industry segments, including sustainability sectors such as solar, hydrogen, and electric vehicle charging. He is also a global player having lived and worked in six states in the United States and seven countries worldwide.

Media Contact (Covanta)
Nicolle Robles, Covanta
+1.862.345.5245
NRobles@covanta.com

Media Contact (EQT)
Mathilde Milch
Director, Communications
+1.917.510.6626
mathilde.milch@eqtpartners.com

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FibrXL invests in dutch clean-tech start-up Healix

ActiveCapital

The Dutch clean-tech start-up Healix healix.eco has secured funds totalling over 10 million Euros in its seed financing round completed beginning of September. The funding follows Healix’ announcement earlier this year to build a factory in Maastricht, the Netherlands to shred, wash and reprocess used twines, ropes, nets, and other plastic fiber waste from farming and fishing into pristine circular polymers for the global manufacturing supply chain. The production facility is expected to be operational in the first quarter of 2022. It has an annual capacity of 6.000 metric tons of polypropylene (PP) and high density polyethylene (HDPE), saving almost 10.000 metrics tons of CO2 emissions per year.

One of the most pressing issues the technical textile industry is facing, is the damaging effect of plastic fiber waste on terrestrial and marine ecosystems. Healix aims to combat this plastic pollution, by transforming existing linear economies in the technical textile industry into sustainable circular economies.

The seed funding round was led by private equity firm Active Capital Company and facilitated by ABN AMRO Asset Based Finance and the Netherlands Enterprise Agency (“RVO”). The investment involves commitments from industrial and high performance fiber supplier FibrXL and Tama, the market leader in crop baling solutions.

Marcel Alberts, founder of Healix and chief executive, says: “I am really happy to welcome our new investors and I am grateful for the support from ABN AMRO and the Dutch government. These investments enable us to proceed at full speed with the commissioning of our production facility and the recruitment of the skilled professionals needed to take our flagship project forward.”

Jeroen Drenth, CEO of FibrXL states “For us, this is much more than an investment. This is a pathway to change the environmental impact of the technical textile industry, as it provides a technology solution that makes fiber-to-fiber recycling possible. And most importantly: this is only the beginning!”

Claudio Moretti, Director Sales & Sustainability at ABN AMRO Asset Based Finance adds “We actively look to support businesses with a sustainable focus. Healix sets a great example with their circular ambitions and we are pleased to act as their financial wingman.”

About Healix

Healix is a Dutch clean-tech start-up that brakes the plastic wave by creating a circular future for plastic fiber waste. We transform used ropes, twines, nets, and other technical textiles into pristine circular polymers for the global manufacturing chain. More info on healix.eco

About FibrXL

FibrXL, a portfolio company of Active Capital Company, is a convertor and distributor of High Performance Fibers, such as Dyneema®, Twaron®, Technora®, Vectran® and Zylon® and leading distributor of industrial yarns such as Polyester, Polyamide and Viscose in Europe, Africa and the Americas. More info on fibrxl.com

About ABN AMRO Asset Based Finance

ABN AMRO Lease together with ABN AMRO Commercial Finance are trading names of ABN AMRO Asset Based Finance N.V. Together they are a leading provider of cross-border asset-based lending and leasing finance solutions, operating in the UK, Netherlands, France and Germany. More info on abnamrolease.com

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EQT Infrastructure to acquire Covanta Holding Corporation, a global leader in Waste-to-Energy solutions, for USD 5.3 billion

  • Waste-to-Energy constitutes a vital segment of the waste disposal value chain by providing sustainable disposal solutions for waste that would otherwise go to landfills
  • Transaction highlights EQT’s commitment to partnering with purpose-driven companies that are integral to the ongoing energy transition and growing circular economy
  • EQT Infrastructure to accelerate Covanta Holding Corporation’s journey towards becoming the most sustainable provider of waste disposal services, driving compelling results for all stakeholders

EQT is pleased to announce that EQT Infrastructure has agreed to acquire Covanta Holding Corporation (“Covanta” or the “Company”) (NYSE: CVA), an owner and operator of Waste-to-Energy (“WtE”) facilities in North America. Under the terms of the agreement, which was unanimously approved by Covanta’s Board of Directors, shareholders will receive USD 20.25 in cash per share of Covanta’s common stock in a transaction valued at USD 5.3 billion, including the assumption of Covanta’s net debt obligations. The purchase price represents a 37 percent premium to Covanta’s unaffected share price of USD 14.86 on June 8th, the day prior to initial media speculation of a transaction.

Waste-to-Energy is a vital part of the waste disposal value chain, offering a far more sustainable alternative to landfilling waste for communities and businesses, with a significantly smaller real estate footprint per ton disposed compared to traditional landfills. The process ensures optimal use of waste by: reducing waste volumes by 90 percent that would otherwise get landfilled; eliminating nearly one ton of greenhouse gases equivalent per ton of municipal solid waste; producing sustainable, highly reliable electricity, capacity, and steam for utilities and industrial customers; and recycling metals found within municipal solid waste.

Headquartered in Morristown, NJ, Covanta has 41 WtE facilities strategically located in key metropolitan areas across the US, Canada and Europe. The Company and its nearly 4,000 full time team members safely convert approximately 21 million tons of waste into sustainable, reliable electricity and produce ~10TWh of baseload electricity and ~600k tons of recycled metals per year. Covanta’s three diversified and complementary business segments comprise waste processing and services, energy production and metals recycling, and the Company is expected to generate Adj. EBITDA of approximately USD 460mm to 480mm in 2021.

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. EQT is excited to partner with the entire Covanta team and to invest in organizational, operational and digital technology initiatives that will enhance Covanta’s ability to provide sustainable solutions to growing waste challenges. 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’s purpose-driven investment model presents several growth opportunities for Covanta, whose business centers on sustainable waste processing and advancing transitions to a circular economy. EQT is committed to working closely with Covanta, providing both capital and operational support, to achieve compelling results for all stakeholders. Under EQT’s ownership, 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.

Michael Ranger, Covanta President and CEO, said, “We are pleased to announce this agreement with EQT. Our comprehensive analysis during the past nine months has been singularly focused on enhancing value for our shareholders. EQT certainly recognizes the value we see in our business and represents an excellent outcome of our strategic review. Furthermore, as an organization dedicated to sustainability and environmental stewardship, EQT shares our vision for a safer, cleaner and more prosperous future through sustainable waste management thereby ensuring no waste is ever wasted. 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.”

The transaction is subject to customary conditions and approvals. It is expected to close by year end.

Barclays served as lead financial advisor to EQT Infrastructure and Kirkland & Ellis LLP served as legal counsel in connection with the transaction. Credit Suisse and TD Securities also served as financial advisors to EQT Infrastructure.

With this transaction, EQT Infrastructure V is expected to be 50 to 55 percent invested (including closed and/or signed investments, announced public offers, if applicable, and less any expected syndication).

About EQT
EQT is a purpose-driven global investment organization with more than EUR 67 billion in assets under management across 26 active funds. EQT funds have portfolio companies in Europe, Asia-Pacific and the Americas with total sales of approximately EUR 29 billion and more than 175,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.

More info: www.eqtgroup.com
Follow EQT on LinkedIn, Twitter, YouTube and Instagram

About Covanta
Covanta is a world leader in providing sustainable waste and energy solutions. Annually, Covanta’s modern Waste-to-Energy (“WtE”) facilities safely convert approximately 21 million tons of waste from municipalities and businesses into clean, renewable electricity to power one million homes and recycle 600,000 tons of metal. Through a vast network of treatment and recycling facilities, Covanta also provides comprehensive industrial material management services to companies seeking solutions to some of today’s most complex environmental challenges.

More info: www.covanta.com

US inquiries: Stephanie Greengarten, +1 646 687 6810, stephanie.greengarten@eqtpartners.com
International inquiries: EQT Press Office, press@eqtpartners.com, +46 8 506 55 334


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Agilitas-backed Reconor Group expands with acquisition of Sten & Grus Prøvestenen A/S

Agilitas

Agilitas, the pan-European mid-market private equity firm, has today announced that its portfolio company, Reconor A/S (“Reconor”), a leading environmental services company in Denmark, has entered into an agreement to acquire Sten & Grus Prøvestenen A/S (“SGP”) from Group De Cloedt (“GDC”). Reconor will integrate SGP with its resource business Norrecco. The financial terms of the deal are not being disclosed.

SGP specialises in delivering efficient environmental solutions for soil and waste management, most notably in the Greater Copenhagen area. The company is located on the Prøvestenen island and has a treatment area of approximately 75,000m2. The company has a strong focus on environmental awareness and, just like Norrecco, developed a product range including the recycling of used materials from various demolition processes into primary raw materials.

The Reconor Group, consisting of Norrecco and City Container, is one of the leading environmental services groups in Denmark, treating and remediating approximately 1.6 million tonnes of soil and handling 0.9 million tonnes of waste annually. The majority of this waste is recycled for use in secondary markets. Through its activities, Reconor contributes to the circular economy by helping Danish industrial and construction groups to meet the country’s high standards of responsible and environmentally-safe recycling.

The strategic acquisition of SGP marks the fifth add-on acquisition for Reconor since Agilitas led a management buyout of the group in 2015 and will consolidate Reconor’s plans to expand its product offering, its customer base and its geographical footprint. The addition of SGP strengthens Norrecco’s position and reinforces its capabilities, particularly in the Copenhagen area which has limited opportunities for new treatment sites. It will also further improve the recycling process of construction and civil engineering waste in the production of building materials.

Agilitas has a successful track record of creating value in the Nordic region, using its deep transformational and sector expertise built through Agilitas’s backing of the Danish and Norwegian companies Recover Nordic, Reconor, Cibicom (previously known as Teracom Danmark), and Danoffice IT.

Henrik Nordenlund, CEO of Reconor, commented: “This strategic acquisition further supports Reconor’s position in Denmark as a leading supplier of environmental solutions within soil and waste management. In addition, the acquisition opens up new business opportunities. Reconor will be even stronger in the future, ensuring the development of sustainable recycling solutions. Through the collaboration with GDC, we can expand the business areas to also include special treatment capabilities.”

Rene Gosvig, Director at GDC Denmark, said: “We are a small player in soil and waste management in the Greater Copenhagen area. Due to a rapid development in the market for environmental solutions and a strategic decision to focus on further expanding our strong position within natural resources, we have assessed that it is the right decision for us to divest the environmental activities to Reconor Group, which we believe is the right backer to further develop the company. Together with the Reconor Group, we will continue to collaborate on the synergies between the parties.”

Kevin Iermiin, of Agilitas and member of the Reconor Board, said: “Reconor is experiencing increasing demand for environmentally-oriented solutions. This acquisition will create synergies between our business units by further broadening our service offering and expanding our footprint and customer base in the Greater Copenhagen area.”

 

Martin Calderbank, Managing Partner at Agilitas, said: “This latest strategic add-on acquisition represents another significant step in Reconor’s growth and will consolidate the company’s transformation plan. Both companies are well-aligned in their commitment to developing environmental solutions to reduce waste and their combination will further bolster Reconor’s standing as a leading environmental services Group business in Denmark.”


Media enquiries to: Greenbrook – Alex Jones and James Madsen

 

+44 20 7952 2000 | agilitas@greenbrookpr.com

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Nordic Capital acquires Sortera, a growth leader within recycling, to support accelerated expansion and the development of industrial solutions for the circular economy

Nordic Capital

Nordic Capital acquires Sortera, a growth leader within recycling, to support accelerated expansion and the development of industrial solutions for the circular economy Image

Nordic Capital has signed an agreement to acquire Sortera, the fastest growing environmental services provider of focused recycling and waste solutions in Sweden. Sortera has grown by assisting both the environmental and operational performance of its customers. Nordic Capital intends to accelerate Sortera’s ongoing international expansion and further strengthen its sustainable service offering.

Sortera is a fast-growing Nordic environmental contractor within collection, recycling, processing and broking of residual products from the building and construction sector. Sortera operates primarily within the B2B SME segment in Sweden and Finland through its three business areas: Recycling (RMI construction recycling services), Materials (End-to-end environmental solutions for waste and water) and Industry (Industrial removal of bulk materials and liquids). Through its operations, Sortera contributes to a circular economy in construction – the second largest recycling opportunity globally after the mining industry. The Company’s services enable the increased use of old materials in new construction, reducing the need for raw materials and hence Greenhouse Gas (GHG) emissions. Sortera is based in Stockholm, Sweden and has recently expanded into Finland. Since its inception in 2006, the Company has grown to become one of the market leaders in Sweden by focusing on environmental concerns, and by offering its customers increased flexibility, high reliability, short lead times, excellent quality, and superior customer support. Sortera has circa 420 employees and revenues of approximately SEK 1.4 bn in 2020.

Nordic Capital is an active owner with deep experience in growing industrial and business services companies, in which it selectively invests. By closely following the sector, Nordic Capital has gained significant knowledge of the construction recycling industry where it sees strong potential for growth. Nordic Capital has strong credentials in ESG and sustainability lies at the heart of its investment strategy. The ambition is to contribute operational and financial resources to support Sortera’s, international sustainability journey in close partnership with the Company’s management team and founder Conny Ryk.

“During 2020 we further strengthened our market position and continued to invest in future growth. With our recent acquisition in Finland, we have taken the first step to replicating the success in new markets. I am proud of what we have accomplished and look forward to continuing the journey together with Nordic Capital and maintaining the best interests of our employees, customers, and suppliers,” comments Sebastian Wessman, CEO of Sortera.

“Nordic Capital is very impressed with what Sortera and the owners have built so far and is excited to support the continued journey. We have followed Sortera for a long time and believe that Nordic Capital has the expertise and resources to support the management team in the forthcoming international expansion that Sortera is embarking upon. This investment is at the core of Nordic Capital’s Responsible Investment and Industrial & Business Services investment strategy, and Sortera will be able to leverage on the experience that we have gained from similar journeys and our broad external network. The positive climate impact generated by companies like Sortera is becoming more important and relevant given the environmental challenges that we all face today,” says Andreas Näsvik, Partner and Head of Industrial & Business Services, Nordic Capital Advisors.

Nordic Capital invests selectively in the Industrial & Business Services sector where it has deployed

more than EUR 3.7 billion in 39 platform investments since inception. These include current portfolio companies Consilium Safety Group, iLOQ and Cary Group (formerly Ryds Bilglas) and former investment Anticimex.

The terms of the transaction with the seller Summa Equity were not disclosed. The transaction is subject to customary regulatory approvals.

 

Press contacts:

Sortera

Sebastian Wessman, CEO
Tel: +46 72 886 95 97
e-mail: Sebastian.Wessman@Sortera.se

Nordic Capital
Katarina Janerud, Communications Manager
Nordic Capital Advisors
Tel: + 46 8 440 50 50
e-mail: Katarina.Janerud@NordicCapital.com

About Sortera

Sortera Group is a Nordic environmental company which, through its three business areas (Recycling, Industry and Materials), strives to be the leading environmental entrepreneur on the Nordic market, with solutions that contribute to increased sustainability and improved environmental performance in all of the company’s operations. With just over 420 employees and a turnover of ca SEK 1.4 billion, Sortera conducts its own operations from sales, collection, treatment and recycling to final recipients. Sortera performs daily services for thousands of companies and private individuals in the Nordic region.

About Nordic Capital

Nordic Capital is a leading private equity investor with a resolute commitment to creating stronger, sustainable businesses through operational improvement and transformative growth. Nordic Capital focuses on selected regions and sectors where it has deep experience and a long history. Focus sectors are Healthcare, Technology & Payments, Financial Services, and selectively, Industrial & Business Services. Key regions are Europe and globally for Healthcare and Technology & Payments investments. Since inception in 1989, Nordic Capital has invested more than EUR 16 billion in over 110 investments. The most recent fund is Nordic Capital Fund X with EUR 6.1 billion in committed capital, principally provided by international institutional investors such as pension funds. Nordic Capital Advisors have local offices in Sweden, Denmark, Finland, Norway, Germany, the UK and the US. For further information about Nordic Capital, please visit www.nordiccapital.com

 

Footnote: “Nordic Capital” refers to any, or all, Nordic Capital branded funds and vehicles and associated entities. The general partners of Nordic Capital’s funds and vehicles are advised by several non-discretionary sub-advisory entities, any or all of which is referred to as “Nordic Capital Advisors”.

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