Waste-to-energy company Covanta has bought Waste Recovery Solutions and Chesapeake Waste Solutions, two environmental services companies located in Pennsylvania.
Covanta didn’t disclose financial details of the acquisitions, but says they will expand its industrial material management network and capabilities in the Mid-Atlantic region. The company previously bought similar businesses in the Midwest and Carolinas and says it expects the total acquisitions completed to date to contribute about $80 million of annual revenue.
Covanta operates 45 waste-to-energy facilities globally that convert about 20 million tons of waste into electricity and recycle about 500,000 tons of metal. It also helps companies including Subaru achieve and maintain zero waste to landfill.
The two latest acquisitions add four locations to Covanta’s asset base and allow it to expand its environmental services offerings. These include treatment, storage, disposal and recycling of industrial waste, secure destruction of consumer products, reverse distribution of highly regulated pharmaceuticals through a Drug Enforcement Agency registered site, and environmental consulting.
“The acquisitions of WRS and Chesapeake will enable continued growth of our environmental services business by expanding our profiled waste volumes and providing new revenue opportunities through on-site services, transportation and industrial recycling,” said Covanta’s president and CEO Stephen J. Jones in a statement. “These businesses also complement and support our core energy-from-waste business.”
The global waste to energy market is expected to reach $43.96 billion by 2024, according to a Research and Markets report. Stringent waste management regulations in Europe and in the US, along with a shift in focus towards energy generation through alternative routes is driving this projected growth.