Waste Management to buy Advanced Disposal for about $3 bln
April 15 () - Waste Management Inc said on Monday it would buy smaller rival Advanced Disposal Services Inc for about $3 billion, as the top waste management services provider looks to expand its footprint in the eastern United States.
The offer of $33.15 represents a premium of about 22 percent to Advanced Disposal's closing price of $27.14 on Friday and would be Waste Management's biggest acquisition in more than nine years.
The acquisition is expected to generate more than $100 million in savings and capital expenditures annually after close, which is expected by the first quarter of 2020.
Advanced Disposal, based in Ponte Vedra, Florida, is the fourth-largest solid waste company in the United States and provides non-hazardous solid waste collection, transfer, recycling and disposal services in 16 states and the Bahamas.
Advanced Disposal had a net debt of about $1.9 billion, Waste Management said.
The Wall Street Journal was the first to report that the companies were in deal talks.
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