UPDATE: Waste Connections and Progressive Waste announced on Friday that they have terminated the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvement Act of 1976 (HSR Act) for the all-stock transaction that will merge the two companies.
By terminating this waiting period, the companies are one step closer to closing the transaction. Closure is expected to happen in the second quarter of 2016, following other customary closing conditions.
Dive Brief:
- Texas-based Waste Connections announced that it will purchase Canada's Progressive Waste Solutions for $2.67 billion as a way to expand throughout Canada.
- The companies will merge in an all-stock deal. Waste Connections shareholders will own about 70% of the company, while Progressive Waste shareholders will own about 30%.
- The merged company will have a pro-forma revenue of about $4.1 billion, as reported by Seeking Alpha, and will be domiciled in Canada after the deal closes in this year's second quarter.
Dive Insight:
The merged company will now be the third-biggest waste management services provider in North America. The combination and its two larger rivals, Waste Management and Republic Services, will dominate nearly half of the North American waste disposal market according to an analyst, as reported by Reuters.
"The combination will be quite compelling to our collective employees, shareholders and other stakeholders," said Waste Connections Chief Executive Officer Ronald J. Mittelstaedt in a statement.
This acquisition comes shortly after Progressive Waste issued a press release explaining that the company had commenced "a review of strategic alternatives," and had hinted at selling its operations.
Through the purchase, Waste Connections will now benefit from Progressive's customer base, which includes 4 million customers in the U.S. and Canada. This is the second (and definitely largest) acquisition from Waste Connections in the past three months.
Waste Dive will continue to update this story as more information is released.
