Stroock Represents Veolia Environnement in Sale of North American Waste-to-Energy Business
Stroock & Stroock & Lavan LLP, a leading national law firm with offices in New York, Los Angeles and Miami, is representing Veolia Environnement SA in the sale of its North American waste-to-energy business to Covanta Holding Corporation for $450 million in cash, subject to certain adjustments. On July 3, 2009, Veolia and Covanta entered into a definitive share purchase agreement with respect to this transaction.
Based in Paris, Veolia is the international leader in providing environmental services for waste, water, energy and transportation. With over $48 billion in revenue, Veolia is the largest environmental services company in the world. Veolia’s waste-to-energy business is conducted through its Montenay International division. Montenay International operates waste-to-energy facilities throughout the United States and Canada. Each of the seven facilities being sold includes a long-term operating contract with the respective municipal client. Collectively, these facilities process approximately 3 million tons of waste per year. The sale of Montenay International is a part of the €1 billion asset disposal program announced by Veolia in March of 2009.
The transaction, subject to applicable regulatory approvals and other closing conditions, is expected to be completed by year-end. The transaction may close in stages.
Richard Madris, head of Stroock’s Infrastructure practice, said, “We are delighted to have represented Veolia on this important deal which Veolia was able to sign in a matter of weeks.”
Corporate partners Richard Madris and Marty Neidell, and tax partner Mayer Greenberg worked on the transaction, along with corporate associates Alex Cota and Jane Yoo, tax and benefits associates Dmitriy Shamrakov and Marissa Holob, and environmental counsel Gail Suchman.
Credit Suisse (New York) served as financial advisor to Veolia. La Compagnie Financiere Edmond de Rothschild (Paris) served as financial advisor to Covanta.