Shares of Enviri Corporation (NVRI) are skyrocketing in pre-market trading on Friday, surging 39.87% following the company's announcement of a major restructuring deal. The environmental services provider has entered into a definitive agreement to sell its Clean Earth business to Veolia Environnement SA for $3.04 billion in cash, while simultaneously planning to spin off its Harsco Environmental and Rail businesses to shareholders.

The transformative transaction is expected to unlock significant value for Enviri shareholders. According to the company, shareholders are anticipated to receive substantial cash consideration of $14.50 to $16.50 per share upon the deal's closing, which is projected for mid-2026. This represents a premium of up to 91% compared to Enviri's unaffected stock price of $8.63 on August 4, 2025. In addition to the cash payout, shareholders will retain ownership in the spun-off entity, temporarily dubbed "New Enviri," receiving 0.33 shares of the new company for each Enviri share held.

Nick Grasberger, Enviri's Chairman and CEO, stated, "This agreement is the result of a comprehensive strategic alternatives process to maximize value for our shareholders and realize the sum-of-the-parts valuation of our businesses." The deal is structured as a tax-efficient transaction, with no material cash tax expenses expected for either Enviri or New Enviri. The newly formed entity will emerge with a strong capital structure, including a net debt to Adjusted EBITDA ratio of approximately 2.0x and an undrawn revolving credit facility. Russell Hochman, currently Senior Vice President and General Counsel, has been appointed to lead New Enviri as CEO following the transaction's completion. The market's enthusiastic response to this strategic move underscores investor optimism about the potential for value creation and the company's future prospects.