Greentech Lead America: Waste Connections, an integrated
solid waste services company that provides solid waste collection, transfer,
disposal and recycling services, has signed an agreement to acquire the
business and operating subsidiaries of R360 Environmental Solutions.
The transaction is valued approximately $1.3 billion in
cash. The transaction remains subject to certain closing conditions, including
receipt of regulatory approvals. Closing is expected to occur in the
fourth quarter of 2012.
Once closed, this acquisition is expected to be more than
400 basis points accretive to Waste Connections’ consolidated EBITDA margin
given the higher margin, disposal-oriented profile of R360’s
activities. It will also be accretive to free cash flow margins.
“We are extremely pleased about the opportunity to
bring R360 into the Waste Connections family. Through acquisitions and new
facility development, R360 has created leading positions in key basins,
providing closed loop oilfield waste services within an increasingly stringent
regulatory environment. This acquisition represents a natural extension of
our existing E&P disposal activities,” said Ronald J. Mittelstaedt,
chairman and chief executive officer.
R360 provides non-hazardous oilfield waste
treatment, recovery and disposal services in several of the most active
natural resource producing areas in the United States, including the oil-rich
Permian, Bakken and Eagle Ford Basins. It operates 26 facilities across
Louisiana, New Mexico, North Dakota, Oklahoma, Texas and Wyoming and has
annualized revenue of approximately $300 million.
While a tepid economy has impacted MSW volumes, increased
drilling activity in unconventional areas is fueling impressive organic growth
within the E&P waste sector.
“For R360, this is a terrific opportunity that
should enable us to grow more rapidly,” said Troy W. Thacker, Chief
Executive Officer of R360 Environmental Solutions. “By combining our
business and expertise with the scale, breadth and financial resources of Waste
Connections, we will be able to enhance the environmental solutions we bring to
our customers.”
Solid waste
management market in the U.S. to grow a CAGR of 3.4 percent over next five
years
Waste Connections is one of the key vendors dominating
the solid waste management space. Other leading companies include Clean
Harbors, Republic Services, Veolia Environmental Services North America and
Waste Management.
Solid waste management market in the U.S. will grow at a
CAGR of 3.4 percent over the period 2011-2015, according to a recent report by
Research and Markets and TechNavio.
editor@greentechlead.com