Republic Services today announced that it has entered into an agreement to divest certain assets to Waste Connections, Inc., based in California, following Republic Services' December 5, 2008 merger with Allied Waste Industries, Inc. This merger formed one of the nation's leading waste and environmental services providers.
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The assets that are being divested include six municipal solid waste landfills, six collection operations and three transfer stations across seven markets: Southern California; Denver, CO; Houston, TX; Lubbock, TX; Greenville/Spartanburg, SC; Charlotte, NC; and Flint, MI. Combined revenue of the assets being sold is approximately $110 million.
"We are pleased with this transaction," said James E. O'Connor, Chairman and CEO of Republic Services, Inc. "We are on track to complete the divestiture process on a timely basis. All proceeds from the sale of divested assets will be used for debt reduction."
The sale of these assets is in accordance with Republic's agreement with the U.S. Department of Justice to divest certain assets following completion of the merger with Allied Waste Industries. Republic is in discussions with potential buyers of other assets required to be divested to fulfill its agreement with the U.S. Department of Justice to divest certain assets.
The transaction with Waste Connections remains subject to closing conditions regarding due diligence, regulatory approval and other customary matters. Closing is expected to occur in the second quarter of 2009.
Republic Services will discuss the sale of these assets as part of the Company's scheduled quarterly conference call to discuss earnings on Friday, Feb. 27, 2009 at 8:30 a.m. Eastern Time.
About Republic Services, Inc.
Republic Services, Inc. is a leading provider of services in the domestic, non-hazardous solid waste industry. It provides non-hazardous solid waste collection services for commercial, industrial, municipal, and residential customers through 427 collection companies in 40 states. It also owns or operates 255 transfer stations, 219 solid waste landfills and 86 recycling facilities. Republic serves millions of residential customers under contracts with more than 3,000 municipalities for waste collection and residential services. It also serves commercial customers throughout its expansive service area. For more information, visit the Republic Services web site at www.republicservices.com.
Information Regarding Forward-Looking Statements
Certain statements and information included herein constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Any such forward-looking statements contained herein are based on current expectations, but are subject to a number of risks, uncertainties, and other factors that may cause actual results to differ materially from expectations expressed in such forward-looking statements, many of which are beyond the control of Republic. Such risks, uncertainties and other factors include: regulatory and litigation matters and risks, legislative developments, changes in tax and other laws, the effect of changes in general economic conditions, risks that the combined company may not achieve anticipated synergies or that the acquisition may not be accretive to earnings in the anticipated time frame, or at all, risks that the combined company may not generate expected cash flows, as well as risks relating to the business and operations of Republic included in its filings with the Securities and Exchange Commission. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating our forward-looking statements and are cautioned not to place undue reliance on forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and the parties hereto undertake no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.
First Call Analyst:
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SOURCE: Republic Services