Dive Brief:
- Covanta Environmental Solutions, a subsidiary of Morristown, NJ-based Covanta, has purchased Winneconne, WI-based Chief Industrial Services, a privately-held environmental services company.
- This acquisition adds two locations to Covanta Environmental’s operations and platform, which includes offering industrial materials management services to address companies’ environmental challenges. The company also recently purchased Milwaukee-based Advanced Waste Services.
- Chief tailors nonhazardous waste management and industrial cleaning services for industrial and commercial customers in the Midwest. Covanta’s energy-from-waste (EFW) facilities convert about 20 million tons of waste into renewable electricity to power 1 million homes and recycle approximately 500,000 tons of metal.
Dive Insight:
The new acquisition of Covanta’s environmentally focused subsidiary comes months before Covanta plans to close two biomass waste-to-energy plants in Maine due to plummeting energy prices.
The company believes this new acquisition is a well-strategized business move, providing opportunity to complement and boost its existing focus in an area it deems a priority and sees as promising.
"The acquisition of Chief reinforces Covanta's commitment to growing our environmental services business by expanding our nonhazardous liquid and solid waste collection, transportation and waste treatment capabilities. We also believe that the integration of Chief with the previous acquisition of Advanced Waste Services will provide opportunities for synergies," said Covanta Environmental Solutions President Paul Stauder.
