7:37 AM, Apr 15, 2019 — Waste Management (WM) has agreed to acquire Advanced Disposal Services (ADSW) in a deal worth approximately $4.9 billion as it seeks to grow its asset footprint in the Eastern half of the US.
The deal will see a subsidiary of Houston, Texas-headquartered Waste Management acquire all outstanding shares of Advanced Disposal for $33.15 per share in cash. It represents a total enterprise value of $4.9 billion when including approximately $1.9 billion of Advanced Disposal’s net debt.
Waste Management said that it expects the transaction to generate more than $100 million in annual cost and capital expenditure synergies. It said that the Advanced Disposal acquisition would be immediately accretive to Waste Management’s adjusted earnings per share and cash flow, with near-term benefits expected from core operating performance and selling,general and administrative cost savings.
“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,” Jim Fish, chief executive of Waste Management, said.
Advanced Disposal had revenues of $1.56 billion in 2018 and approximately 6,000 employees. It serves more than three million residential, commercial, and industrial customers, including over 800 municipalities primarily in 16 states in the Eastern half of the United States.
Price: 104.00 Price Change: +2.21 Percent Change: +2.17