North America’s leading provider of comprehensive waste management environmental services, Waste Management Inc., has entered into a definitive agreement to acquire Florida-based Advanced Disposal Services, the fourth largest solid waste company in the United States, in a deal valued at US$4.9 billion.
With 2018 revenues of US$1.56 billion, adjusted EBITDA of US$427 million and approximately 6,000 employees, Advanced Disposal serves more than 3 million residential, commercial, and industrial customers, including over 800 municipalities primarily in 16 states in the Eastern half of the United States. Advanced Disposal’s solid waste network includes 94 collection operations, 73 transfer stations, 41 landfills, and 22 owned or operated recycling facilities.
Waste Management owns or operates 252 landfill sites, the largest network of landfills in North America with a total capacity of 5.0 billion tons. It also manages 314 waste transfer stations, operates 130 landfill gas-to-energy facilities and is a leading recycler of paper, cardboard, glass, plastic and metal, with 102 material recycling facilities (MRFs). As of the end of December 2018, the company had 43,700 full-time employees.
With Waste Management’s position within the US waste industry set to become more dominant through the acquisition, it remains to be seen if the US regulators will require divestments for competition-related reasons. With this possibility in mind, an opt-out clause to abandon the deal has been adopted which will trigger if the enforced divestments exceed US$200 million.