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‘Waste Management to pick up Advanced Disposal’
Posted on Monday, 15 April 2019 09:35
Waste Management is possibly acquiring US-based waste disposal company Advanced Disposal Services for around USD 5.00 billion in cash, including debt, people close to the situation told the Wall Street Journal (WSJ).
According to these sources, the buyer is offering USD 33.15 per share, which would represent a premium of 22.1 per cent to the target’s close of USD 27.14 on 12th April, the last trading day prior to the newspaper’s report.
Zephyr, the M&A database published by Bureau van Dijk, shows the potential deal would be the largest transaction targeting solid waste collection operators announced worldwide since Republic Services snapped up US-based Allied Waste Industries for USD 6.07 billion in June 2008.
Reuters also picked up on the potential acquisition but did not receive a response after contacting the companies outside of business hours yesterday; however, the WSJ stated that an agreement could be announced soon.
Headquartered in Florida, Advanced Disposal is billed as the fourth-largest solid waste management company in the US, according to its website.
Its services include the collection, transfer and recycling of non-hazardous rubbish for the industrial, healthcare and government sectors, among others.
Advanced Disposal employs 6,000 people across 200 sites in the US and disposes around 16.00 million tons of garbage annually via 41 landfills.
For the financial year ended 31st December 2018, it posted service revenue of USD 1.56 billion, up from USD 1.51 billion in the preceding 12 months.
The possible deal with the target would represent Waste Management’s largest ever acquisition, having withdrawn its offer to buy Republic Services for USD 6.73 billion in October 2008.
Founded in 1971, the purchaser claims to be North America’s largest residential recycler and renewable energy provider.
It focuses on recovering the naturally occurring gas found inside landfills to generate electricity and currently serves over 21.00 million municipal, commercial and industrial customers across the US and Canada.
Waste Management booked revenue of USD 14.91 billion for the financial year ended 31st December 2018, up from USD 14.49 billion in the previous year.
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