Republic Services, Inc. announced today that it has sold Living Earth Technology Company (LETCO), a non-core, stand-alone business in Texas. LETCO is a compost, mulch and soil business that provides these products and other landscape materials to retailers, landscaping contractors and nurseries.
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Hunt Special Situations Group, L.P. ("Hunt") purchased LETCO on November 16, 2007 for approximately $37 million. LETCO has average annual revenue of approximately $50 million and generates low double-digit operating income margins.
"The divestiture of non-core assets is consistent with Republic's long- term business strategy," said James E. O'Connor, Chairman and CEO of Republic Services. "The sale of LETCO allows Republic to continue to focus on our core business which is the collection, recycling, transfer and disposal of municipal solid waste."
Republic Services, Inc. is a leading provider of environmental services including solid waste collection, transfer and disposal services in the United States. The Company's operating units are focused on providing solid waste services for commercial, industrial, municipal and residential customers.
Certain statements and information included herein constitute "forward- looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance, or achievements expressed or implied in or by such forward-looking statements. Such factors include, among other things:
-- whether the Company's estimates and assumptions concerning its
selected balance sheet accounts, income tax accounts, final capping,
closure, post-closure and remediation costs, available airspace, and
projected costs and expenses related to the Company's landfills and
property and equipment, and labor, fuel rates and economic and
inflationary trends, turn out to be correct or appropriate;
-- various factors that will impact the actual business and financial
performance of the Company such as competition and demand for services
in the solid waste industry;
-- the Company's ability to manage growth;
-- compliance with, and future changes in, environmental regulations;
-- the Company's ability to obtain approvals from regulatory agencies in
connection with operating and expanding the Company's landfills;
-- the ability to obtain financing on acceptable terms to finance the
Company's operations and growth strategy and for the Company to
operate within the limitations imposed by financing arrangements;
-- the ability of the Company to repurchase common stock at prices that
are accretive to earnings per share;
-- the Company's dependence on key personnel;
-- general economic and market conditions including, but not limited to,
inflation and changes in commodity pricing, fuel, labor, risk and
health insurance, and other variable costs that are generally not
within control of the Company;
-- the Company's dependence on large, long-term collection, transfer and
-- the Company's dependence on acquisitions for growth;
-- risks associated with undisclosed liabilities of acquired businesses;
-- risks associated with pending legal proceedings; and
-- other factors contained in the Company's filings with the Securities
and Exchange Commission.
First Call Analyst:
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SOURCE: Republic Services, Inc.