Covanta Holding Corporation – EGI

Covanta Holding Corporation

Key Takeaway

Platform for a global leader

We acquired Covanta, an owner and operator of energy-from-waste assets, in 2004 in a bankruptcy sale process through Danielson Holding Company, an EGI investment with substantial NOL assets. The NOL represented a competitive advantage for Danielson in the bidding process as it allowed us to put forth a creative solution that addressed tax issues in the estate. We subsequently backstopped a rights offering and led management in a series of complex financings, which enabled significant acquisitions, including that of its largest competitor. We have remained actively engaged with the company, partnering with management to continue to evolve the business strategy. Today, Covanta is the largest energy-from-waste company in the world, and our founder, Sam Zell, still serves as chairman.