Dive Brief:
- Waste Management Inc. is buying Benz Sanitation Inc. and its two sister companies, Tehachapi Recycling Inc. and Benz Propane Co. Inc. The companies are based in Kern County, CA.
- Benz offers commercial and residential waste collection, document shredding, construction services, portable toilets, septic tank pumping, and propane services.
- Benz had been planning to lay off 132 employees, however Waste Management plans to retain a majority of the employees while the company's owners retire. The sale is expected to close on August 1.
Dive Insight:
The move continues Waste Management's expansion strategy of acquiring companies that fit into its existing infrastructure. Even as other major companies expand, Waste Management continues to be the nation's biggest waste and recycling provider. The company already operates in Ridgecrest and California City, but nowhere else in Kern County.
In January, the company purchased 12 sites in Florida from Southern Waste Systems/Sun Recycling for an undisclosed amount. And in April, the company acquired Colorado-based Baker Sanitation Inc. According to their website, Waste Management now services more than 21 million customers in North America.
This newest acquisition comes after a positive start to the year. As reported recently, Waste Management announced Q1 revenues of $3.2 billion and net income of $258 million — both up from the same period in 2015. Even with commodity prices down 12% from 2015, overall recycling volume increased by 3% and the company projects a strong year ahead.
