Waste Management to buy Advanced Disposal

17.04.2019 − 

The US market leader Waste Management Inc. plans to take over its competitor Advanced Disposal, the fourth largest waste firm in the United States. The agreed price represents a total enterprise value of $4.9bn when including approximately $.19bn of Advanced Disposal's net debt. The two companies expect the transaction to be completed in the first quarter of 2020.

Waste Management (WM) states that the customer base and assets of Advanced Disposal will complement its own operations, in particular in the Eastern half of the United States. The company expects the take-over to generate more than $100m in annual cost and capital expenditure synergies.

Advanced Disposal has more than three million residential, commercial and industrial customers, including more than 800 local authorities, according to WM. Its activities include 94 collection operations, 73 transfer stations, 41 landfills, and 22 owned or operated recycling facilities. Last year, the company, which has around 6,000 employees, generated a net profit of $9.4m on annual revenues of $1.56bn.

WM generated annual turnover of $14.91bn last year and net income attributable to its shareholders of $1.925bn. The company has almost 44,000 employees and owns or operates 252 landfills including five for hazardous waste. In addition, the company has 314 transfer stations and 102 sorting plants.

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