M&A · Energy · Cogeneration Services & Small Power Producers
EQT to acquire Covanta Holding Corp
Announced Jul 14, 2021 · Closed Nov 30, 2021
Deal value$2.69BEV $5.07B
Premium9.0%To unaffected price
EV / Adj. EBITDA13.8x2.6x EV / Revenue
ConsiderationAll cash$20.25 per share
Transaction
- Acquirer
- EQT
- Target
- Covanta Holding Corp
- Buyer type
- Private equity
- Offer price per share
- $20.25
- Enterprise value
- $5.07B
- Status
- Closed Nov 30, 2021
Deal protections
- Break fee (target pays)
- $81.3M · 3.0%
- Reverse fee (buyer pays)
- $163M · 6.0%
- Go-shop
- No-shop
- Financing
- Committed · Barclays, Credit Suisse, BNP Paribas, Goldman Sachs, Credit Agricole, RBC Capital Markets +2
Advisors
- To the acquirer
- Not disclosed
- To the target
- BofA Securities
- BofA Securities fee
- $37.5M
Sector context · Energy
- Comparable deals
- 15 in the prior 24 months
- Premium
- 9.0% vs. 41.5% sector median
- EV / Adj. EBITDA
- 13.8x vs. 13.3x sector median
- Break fee
- 3.0% vs. 2.0% sector median
Timeline
- AnnouncedJul 14, 2021
- Proxy filedAug 19, 2021
- Definitive proxySep 2, 2021
- Shareholder voteOct 12, 2021
- ClosedNov 30, 2021
Valuation · fairness opinions
Trading comparables$18.00$21.75
Trading comparables$17.25$21.25
Precedent transactions$10.50$18.25
Discounted cash flow$14.25$25.00
52-week trading range$7.50$18.00
Offer $20.25
Implied value per Covanta Holding Corp share by analysis, from BofA Securities · DCF discount rate 6.25%–7.25%.