Waste-to-energy company Covanta Holding Corp. recently purchased the Delaware Valley Resource Recovery Facility, operating as Covanta Delaware Valley L.P., in Chester, Pa., from GE Energy Financial Services for $94 million in cash.
The transaction includes the acquisition of approximately $122 million cash collateral trust and the assumption of $64 million in facility project debt principal, according to a news release.
The purchase price was funded from cash on hand and available liquidity under Covanta's revolving credit facility, the company said.
"Acquiring ownership of the Delaware Valley facility is a smart financial transaction for us," Anthony Orlando, Covanta's CEO and president, said in a statement. "In addition, we will now enjoy the benefit of ownership which we believe will open new opportunities and strengthen our client relationship with the Delaware County Solid Waste Authority."
Morristown, N.J.-based Covanta operates and previously leased the Delaware Valley facility from GE Energy Financial. The facility has a processing capacity of approximately 2,700 tons per day, serving Delaware County, Pa., and surrounding communities.