Republic Services, Inc. (NYSE: RSG) announced today that it completed its acquisition of all outstanding shares of US Ecology, Inc. (NASDAQ-GS: ECOL) on May 2, 2022.
Estimated $75 million to $100 million of cross-selling revenue opportunity between Republic’s existing $1.5 billion manufacturing portfolio and US Ecology’s $1 billion portfolio provides customers a single partner to manage their multiple waste streams efficiently and sustainably.
Through a national footprint of vertically integrated assets transaction expected to be immediately accretive to adjusted earnings and free cash flow, with $40 million of cost synergies expected to be achieved within the first three years.
The previously announced purchase price of $48 per share in cash represents a total value of $2.2 billion including debt net of cash acquired. US Ecology stock will be delisted from the NASDAQ Global Select Market.
This transaction expands Republic’s environmental solutions footprint across the U.S. and Canada and provides vertically integrated capabilities for its environmental solutions business.
It also provides a platform for accelerated growth, including cross-selling revenue opportunity and additional tuck-in acquisitions.
“We are excited to welcome US Ecology employees to the Republic team, with US Ecology’s deep expertise in specialty waste handling, this acquisition strengthens our position as a leading environmental services company offering one of the most complete sets of products and services to our customers.”said Jon Vander Ark, president and chief executive officer.
Republic funded the transaction using a combination of its credit facilities and a new three-year term loan. The Company expects to maintain a strong balance sheet and solid investment-grade credit profile, and plans net debt-to-EBITDA, as defined in its credit agreement, to return to below 3x within 18 months.
About Republic Services
Republic Services, Inc. is a leader in the U.S. environmental services industry. Through its subsidiaries, the Company provides superior service offerings while partnering with customers to create a more sustainable world.
The Company participates in investor presentations and conferences throughout the year.
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