Mergers & acquisitions

Waste Management to acquire Advanced Disposal

Waste Management Inc., Houston, and Advanced Disposal Services Inc., Ponte Vedra, Florida, announced April 15 that they have entered into a definitive agreement under which a subsidiary of Waste Management will acquire all outstanding shares of Advanced Disposal for $33.15 per share in cash, representing a total enterprise value of $4.9 billion, including approximately $1.9 billion of Advanced Disposal’s net debt. The per share price represents a premium of 22.1 percent to Advanced Disposal’s closing share price as of April 12, the last trading day prior to the announcement, and a premium of 20.9 percent to Advanced Disposal’s 30-day volume weighted average price as of the same date.

According to Waste Management, this acquisition grows the company’s footprint and opens the door for the hauler to deliver waste and recycling services to Advanced Disposal’s network of customers. With 2018 revenues of $1.56 billion, adjusted EBITDA of $427 million and approximately 6,000 employees, Advanced Disposal serves more than 3 million residential, commercial and industrial customers, including over 800 municipalities primarily in 16 states in the eastern half of the United States. Advanced Disposal’s solid waste network includes 94 collection operations, 73 transfer stations, 41 landfills and 22 owned or operated recycling facilities.

“At Waste Management, we focus on creating value for all stakeholders, delivering on our commitments to employees, customers, community partners, shareholders and the environment. The acquisition of Advanced Disposal extends these commitments by adding complementary assets and operations as well as a team with a shared focus on safety, outstanding service and operational excellence,” Waste Management CEO Jim Fish says. “With this acquisition, we will grow our asset footprint to serve more customers and communities and generate significant growth and value creation opportunities for Waste Management’s shareholders and our combined company’s employee base. Waste Management’s disciplined capital allocation and balance sheet strength position us well to execute upon this unique opportunity to expand our scale and capabilities to serve an even broader customer base and realize the strategic and financial benefits the acquisition of Advanced Disposal creates.”

“We are pleased to have reached this milestone agreement with Waste Management to deliver an immediate cash premium to Advanced Disposal stockholders. We view Waste Management as an industry leader with one of the most respected brands in the nation,” says Advanced Disposal CEO Richard Burke. “This acquisition stands as a testament to the strength of the Advanced Disposal business and brings together two strong waste management teams with extensive environmental services expertise to better serve our customers and communities. We look forward to working with the Waste Management team to complete the transaction and ensure that we continue to deliver the highest quality service to our customers.”

Harsco acquires Clean Earth Inc.

Harsco Corporation, headquartered in Camp Hill, Pennsylvania, recently announced its plans to acquire Clean Earth Inc. from Compass Group Diversified Holdings of Westport, Connecticut, for $625 million in cash, subject to post-closing adjustments.

Headquartered in Hatboro, Pennsylvania, Clean Earth is one of the largest specialty waste processing companies in the U.S., providing processing and recycling for construction and demolition (C&D) debris, hazardous wastes, contaminated materials and other special wastes. Harsco provides industrial services and engineered products that serve large industries, including steel, railways and energy, in more than 35 countries.

Clean Earth analyzes, treats, documents and recycles waste streams generated across many diverse end markets in the infrastructure, industrial, commercial, and institutional sectors. Clean Earth is a leader in the hazardous waste market, Harsco says and is the largest operator in the contaminated materials and dredged material management market, operating 27 permitted facilities in the U.S. The company currently maintains a portfolio of more than 200 scarce and difficult-to-replicate permits with a 100 percent permit renewal success rate to date, Harsco says.

In 2019, Clean Earth is expected to generate approximately $300 million in revenue and approximately $65 million of adjusted EBITDA.

With the addition of Clean Earth, Harsco says it will gain entry into the environmental services markets. Clean Earth will expand Harsco’s portfolio with a diverse range of customized environmental services and solutions. Harsco says it also intends to grow within the industrial waste sector outside of the U.S. over time.

“Harsco has been strategically transforming its portfolio with a goal towards value creation. The highly strategic and complementary acquisition of Clean Earth, the addition of ALTEK Group in May 2018, and the exit of certain businesses together bring us closer to realizing our vision of becoming a global market leader and provider of environmental solutions to a variety of industries,” says Harsco Chairman and CEO Nick Grasberger.