Agreement Reached to Sell Montenay International, VEOLIA
Release Date: 2009-07-06
Veolia Environnement (Euronext: VIE and NYSE: VE) announced today that it has entered into an agreement to sell Montenay International, its North American portfolio of waste-to-energy contracts, to Covanta Holding Corporation (NYSE: CVA) for a total consideration of $450 million including debt assumption. This enterprise value represents nearly 10 times 2008 EBITDA.
The transaction is subject to applicable regulatory approvals as well as other customary closing conditions, including third parties' approvals. In the absence of such approvals, certain assets could be excluded from the transaction's scope, the price being reduced pro tanto. Our goal is to close the transaction before the end of the year.
The sale of Montenay International forms part of the disposal program announced by Veolia Environnement on March 6, 2009.
Denis Gasquet , CEO of Veolia Environmental Services
«Our portfolio of waste-toenergy contracts in North-America is largely independent from and generates few synergies with the rest of our activities. The potential areas of development in the North America waste-to-energy market also appear to be limited and independent from the other segments of the solid waste market. The waste-to-energy market is, however, a strategic growth platform for Veolia Environmental Services in countries with strong growth potential where synergies can be generated with our waste collection or waste treatment activities, for example in the UK through Private Finance Initiatives.»
Veolia Environnement is an important leader in environmental services in North America. Overall the group’s operations in North America generated approximately $4.5 billion of revenue in 2008, net of the divested business.
| Type: | NORMAL |
| Company: | VEOLIA |
| Country: | France |
| Url: | http://www.veolia.com/en/veolia-news/article.aspx?id=220 |