Covanta has agreed to acquire Circon Holdings, Inc., a portfolio company of Kinderhook Industries. Covanta says that this acquisition will put into motion the company's most transformative acquisition in its history.
The addition of Circon marks the largest single acquisition for Covanta in two decades, bringing with it more than 600 new employees and 2,500 customers. Since Covanta's acquisition by EQT Infrastructure, Covanta has acquired seven other companies.
Headquartered in La Porte, Texas, Circon is a full-service provider of environmental services with a customer base across more than 20 waste facilities in the Midwest, Southeast, and Gulf Coast. This acquisition is noteworthy for Covanta due to Circon's geographic reach over multiple regions of the country and its suite of circularity offerings in wastewater treatment and non-hazardous and hazardous waste management.
"Covanta, with Circon's new geographies and complementary capabilities, will offer the absolute highest value proposition for customers, with full integration across logistics, field services, processing, and disposal," says Azeez Mohammed, president and CEO of Covanta. "This acquisition accelerates our flightpath to becoming the premier company for sustainable materials management. With Circon, we are enhancing our carbon-negative solutions and bringing our offerings to the next level. We're excited about this development and look forward to welcoming Circon's impressive team. Together we'll continue to transform Covanta into the very best service provider for our customers' unique environmental challenges and ESG goals."
The addition of Circon's services doubles Covanta's wastewater footprint and grows its engineered fuels business five-fold. It also meaningfully expands the company's footprint in the Gulf Coast and Midwest regions.
"The entire Circon team is grateful for the successful partnership with Kinderhook. We are eager to launch into our next phase of growth with Covanta. After all, we were both built on the tenet of sustainability with the goal of minimizing waste and embracing a circular economy through innovative and environmentally conscious services," says Frank Iezzi, CEO of Circon. "We will continue to deliver on these sustainable offerings, now dramatically enhanced with the expanded network, increased operational efficiency, and strong environmental solutions-based innovations from Covanta. This is exactly what will take our waste management services – and the entire industry – to the next level."
The acquisition is still subject to customary regulatory approvals.