Waste Management, Houston, announced that it completed its acquisition of all outstanding shares of Ponte Vedra, Florida-based Advanced Disposal
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
“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
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-half of negotiations and DOJ scrutiny. On April 15, 2019, Waste Management announced its intent to acquire ADS. The deal, which was originally expected to close by the first quarter of 2020, repeatedly was delayed by pending DOJ approval. GFL announced June 24 that it had entered into a definitive agreement to purchase substantially all of the divestiture assets expected from the Waste Management/ADS deal.
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.
“With integration getting underway, the team is focused on a strong finish to 2020,” Fish says. “We look forward to providing our 2021 outlook for the combined organization when we announce fourth-quarter and full-year earnings.”