In an effort to expand its customer base, service network and
recycling volumes, WM Recycle America, L.L.C., a subsidiary of
Waste Management, Inc.
), acquired Greenstar, LLC for an undisclosed amount. The
business was acquired from NTR plc and includes 12 material
recovery facilities that managed approximately 1.5 million tons
of recycled material in 2012.
CLEAN HARBORS (CLH): Free Stock Analysis
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This acquisition has added one of the nation's largest recyclers
to its business. Post-acquisition, Waste Management customers
will have greater access to recycling solutions and the company
expects the recycling business to grow over the long term. This
acquisition also expands Waste Management's already extensive
The acquisition is expected to be accretive to the company's
earnings in the long run. The company has set a goal of managing
20 million tons of recyclable material by 2020. The acquisition
of Greenstar will enable the company to reap synergistic benefits
and augments its growth and transformation strategy to extract
more value from the existing materials.
The transaction is also in line with the company's strategy to
grow its earnings, expand its brokerage and national account
service offerings, thus further expanding its margins.
Headquartered in Houston, Texas, Waste Management is the largest
provider of comprehensive waste management services in North
America. The company provides collection, transfer, recycling and
resource recovery, as well as disposal services to residential,
commercial, industrial and municipal customers. It is also a
leading developer, operator and owner of waste-to-energy and
landfill gas-to-energy facilities in the U.S.
However, the company operates in an intensely competitive
landscape that includes big players such as
Clean Harbors, Inc
Republic Services Inc
Waste Management currently has a Zacks Rank #2 (Buy). One of its
Navigant Consulting Inc
) also carries a Zacks Rank #2 (Buy).