Covanta announces acquisition of three local businesses

Dec. 6—Covanta, which operates a resource recovery facility in Niagara Falls, announced the acquisition of three local companies that are part of the Santarosa Group.

Those businesses are SGS Recovery, Buffalo Fuel Corp., and Frontier Fibers, all of whom are involved in different alternative fuel businesses.

The announcement comes as the Town of Niagara will consider final approval for Covanta's plans to build a new 4,200 square foot building at its Quarry Road facility to accommodate more waste capacity at its meeting this evening.

A leader in the engineered fuel industry, SGS Recovery manufactures a product to replace traditional fossil fuels for some of the nation's largest commercial operations in the cement and lime industries. This fuel significantly reduces kiln emissions and is a direct replacement for traditional feedstocks.

Frontier Fibers produces bedding for dairy, livestock and equestrian markets. Composed of residual fiber made of 100% biodegradable materials, its bedding products add immense value to reuse solutions that support end-of-life supply chains and circular economic growth.

Buffalo Fuel Corp. provides hauling and logistics services for an expansive variety of waste.

Matthew Mulcahy, the head of Corporate Development for Covanta, said that since being acquired by the EQT Infrastructure fund, it has been rapidly expanding its footprint as the leading sustainable materials management providers in North America.

"These acquisitions are a game changer because they elevate us into the leading provider of alternative fuels in the country," Mulcahy said. "All three companies represent services that open up a whole new range of carbon negative capabilities for us between engineered fuels, logistics and waste-to-product offerings."

The three acquisitions represent the latest in a series of transactions following Covanta itself being purchased by the EQT Infrastructure fund. The company had also purchased Miller Environmental Transfer and Biologic Environmental Services and Waste Solutions earlier this year.

"The additions of SGS Recovery, Frontier Fibers and Buffalo Fuel Corp. to our team is a game changer because it elevates Covanta into the leading provider of alternative fuels in the country," said Covanta President and CEO Azeez Mohammed. "These are exciting early innings in our transformation as we lay the groundwork for more sustainable solutions to carbon intrusive industries."

Mulcahy said Covanta is currently in the integration stage and very little change in the three companies' day-to-day operations, while being active in seeking out new partners. Aaron Santarosa, President of the Santarosa Group, will continue to manage these businesses.

"Since our founding, we have consistently delivered innovative services to our customers," said Santarosa. "Our three subsidiaries, SGS Recovery, Frontier Fibers, and Buffalo Fuel Corp. will continue to do this, but at a whole new level at scale with the backing of industry leader Covanta. We have a bright future ahead of us and we look forward to bolstering our services with Covanta's unique offerings that meet the needs of an increasingly environmentally-conscious business world."