Waste Management Inc, North America’s premier environmental waste management solutions company, announced today that it has entered into an agreement to acquire Florida-based waste management firm Advanced Disposal Services. The deal will see Waste Management pay a total of US$33.15 per share in cash for Advanced Disposal, for a total enterprise value of $4.9bn, including approximately $1.9bn in debt.
This acquisition will grow Waste Management’s footprint as, with 2018 revenues of $1.56bn, adjusted EBITDA of $427mn and approximately 6,000 employees, Advanced Disposal serves more than 3mn residential, commercial and industrial customers, including over 800 municipalities primarily in 16 states in the Eastern half of the United States.
In addition, Advanced Disposal customers will benefit from the increased differentiated, sustainable waste management services offered by Waste Management.
“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,” said Jim Fish, President and Chief Executive Officer of Waste Management. “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,” said Richard Burke, Chief Executive Officer of Advanced Disposal. “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.”