Mergers & acquisitions

Waste Management finalizes Advanced Disposal deal

Waste Management, Houston, announced that it completed its acquisition of all outstanding shares of Ponte Vedra, Florida-based Advanced Disposal Oct. 30 following the receipt of required regulatory approvals. The previously announced purchase price of $30.30 per share in cash represents a total enterprise value of $4.6 billion when including approximately $1.8 billion of Advanced Disposal’s net debt. Advanced Disposal stock will no longer be traded on the New York Stock Exchange.

In a news release, Waste Management says this acquisition grows the company’s footprint and allows it to deliver “unparalleled access to differentiated, sustainable waste management and recycling services to approximately 3 million new commercial, industrial and residential customers primarily located in 16 states in the eastern half of the United States.”

“We are excited to reach the finish line on this compelling acquisition, and I would like to welcome the Advanced Disposal team members to the WM family,” Waste Management President and CEO Jim Fish says. “The acquisition expands Waste Management’s reach and positions us for significant earnings and cash flow growth. The hard work our integration teams have done has prepared us to provide a seamless transition for employees and customers.”

Immediately following the completion of the Advanced Disposal acquisition, Waste Management and Advanced Disposal completed the sale of all of the assets required by the U.S. Department of Justice (DOJ) to be divested in connection with the Advanced Disposal acquisition to Ontario-based GFL Environmental.

The DOJ announced Oct. 23 that Waste Management would be required to divest 15 landfills, 37 transfer stations, 29 hauling locations, more than 200 waste collection routes and other assets to proceed with the Advanced Disposal acquisition. The DOJ said that without the divestiture, the acquisition would substantially lessen competition for small container commercial waste collection or municipal solid waste disposal services in more than 50 local markets.

The announcement of the closing of the acquisition marks the end of more than a year and a half of negotiations and DOJ scrutiny.

Waste Management funded the transaction using a combination of credit facilities and commercial paper. Waste Management says it expects to maintain a strong balance sheet and solid investment-grade credit profile with leverage ratios well within the financial covenants of its credit facilities.