New Jersey, United States [RenewableEnergyWorld.com] Covanta Holding Corporation announced that it has amended its agreement to purchase two biomass energy facilities from co-owners Ridgewood Maine L.L.C. and Indeck Energy Services Inc.
Pursuant to the amended agreement, Covanta has agreed to acquire these two facilities for approximately US $52 million subject to working capital adjustments. The original deal, as previously agreed to in August of this year, called for Covanta to pay US $87 million net of cash acquired. The transaction will be funded from cash on hand.
As part of the amended agreement, Ridgewood and Indeck must satisfy conditions during the first quarter of 2009 that are similar to the conditions to closing contained in the original acquisition agreement. These conditions include receipt by the sellers of regulatory approvals as well as approval by Ridgewood’s shareholders.
Following Ridgewood’s inability to secure shareholder approval by October 31, 2008, either party had the right to terminate the agreement. Instead, the parties have entered into the amended agreement.