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Waste Management And Advanced Disposal Announce Revised Terms Of Acquisition And Agreement To Sell Substantially All Anticipated Regulatory Divestitures To GFL Environmental; Amended Definitive Agreement To Acquire Advanced Disposal For $30.30/Share

Waste Management’s Pending Acquisition of Advanced Disposal Will Combine Dedicated and Experienced Teams with Shared Commitments to Safety, Outstanding Customer Service and Operating Excellence Amended

Benzinga · -
  • Waste Management’s Pending Acquisition of Advanced Disposal Will Combine Dedicated and Experienced Teams with Shared Commitments to Safety, Outstanding Customer Service and Operating Excellence
  • Amended Definitive Agreement to Acquire Advanced Disposal for $30.30 per share in cash, Representing a $4.6 Billion Enterprise Value
  • Both Waste Management and Advanced Disposal Remain Confident in the Long-Term Strength of their Businesses
  • Waste Management Continues to be Confident in the Long-Term Value from the Acquisition and Expects Annual Cost and Capital Expenditure Synergies to Exceed the $100 Million Previously Announced
  • Definitive Agreement to sell to GFL Environmental Substantially All Anticipated Divestitures
  • Amendment and Divestiture Agreement Provide Increased Closing Certainty
  • Waste Management, Advanced Disposal, and GFL Environmental Continue to Work Cooperatively with the U.S. Department of Justice to Expeditiously Gain Regulatory Clearance

HOUSTON & PONTE VEDRA, Fla.--(BUSINESS WIRE)-- Waste Management, Inc. (NYSE:WM) and Advanced Disposal Services, Inc. (NYSE:ADSW) announced today that they have amended the terms of the definitive agreement under which a subsidiary of Waste Management will acquire all outstanding shares of Advanced Disposal for $30.30 per share in cash, representing a total enterprise value of $4.6 billion when including approximately $1.8 billion of Advanced Disposal’s net debt.

Waste Management and Advanced Disposal also announced today that they have entered into an agreement for GFL Environmental to acquire a combination of Advanced Disposal and Waste Management assets for $835 million, representing approximately $345 million in total revenue based on 2019 results. Approximately $300 million of the total revenue is related to assets and businesses being sold to GFL Environmental to address substantially all of the divestitures expected to be required by the U.S. Department of Justice. As with the Advanced Disposal acquisition, the sale of assets to GFL Environmental remains subject to clearance from the U.S. Department of Justice and is also conditioned on the closing of Waste Management’s acquisition of Advanced Disposal.

“We continue to be excited by the compelling strategic rationale and financial benefits of the Advanced Disposal acquisition,” said Jim Fish, President and Chief Executive Officer of Waste Management. “Over the last several months, as we have worked to gain regulatory approval from the U.S. Department of Justice, we have become increasingly convinced that the people and customer additions this acquisition brings to Waste Management will be of tremendous value and we are confident that Waste Management’s operational excellence will allow us to achieve expected synergies. In addition, we are pleased to have reached an agreement with GFL Environmental for substantially all of the divestitures anticipated to be required by the U.S. Department of Justice at a valuation that appropriately reflects the high-quality nature of the Advanced Disposal and Waste Management assets to be sold. Today’s announcement positions us to move forward with collective focus on satisfying the U.S. Department of Justice review process and successfully completing both transactions.”

“We believe the revised agreement with Waste Management, coupled with our joint agreement to sell substantially all of the divestitures to GFL Environmental, delivers significant value and certainty of closing to Advanced Disposal stockholders,” said Richard Burke, Chief Executive Officer of Advanced Disposal. “We continue to work hand in hand with the Waste Management team, GFL Environmental, and the U.S. Department of Justice to gain regulatory clearance and complete the transaction.”