Republic Services of Canada, Ltd., a wholly owned subsidiary of Republic Services, Inc.
The contract is expected to begin on January 1, 2001, continue for five years, and may be extended for a total of up to 22 years. If extended for the entire period, the contract could generate up to $400 million in revenue during the term before considering Toronto's growth and adjustments for inflation.
Under terms of the contract, on January 1, 2001, Republic and Wilson will begin to transport and dispose of 330,000 tons (300,000 Canadian tonnes) per year of municipal and commercial solid waste generated in the Greater Toronto Area (GTA). Following closure of the City's Keele Valley Landfill located in Vaughn, Ontario, which is scheduled to occur by December 31, 2002, Republic Services and Wilson Logistics anticipate managing up to 550,000 tons (500,000 Canadian tonnes) per year of solid waste for the City of Toronto.
"This contract ensures the proper closure of the Keele Valley Landfill and provides the people and businesses in Toronto with a safe, reliable and long- term solution to their solid waste problem," said Bob Webb, Vice President of Republic Services of Canada, Inc.
"This is an excellent example of the public and private sectors working together to solve solid waste issues in a cost effective and environmentally sound manner," said Brian Bales, Vice President of Corporate Development for Republic Services.
Republic Services, Inc. is a leading provider of solid waste collection, transfer and disposal services. The Company's operating units are focused on providing solid waste services for commercial, industrial, municipal and residential customers. Wilson Logistics, Inc. is an established Toronto-based transportation solutions provider.
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, closure and post-closure costs, available airspace, and projected costs and expenses related to the Company's landfills and property, plant and equipment, turn out to be correct or appropriate, and various factors that will impact the actual business and financial performance of the Company such as competition in the solid waste industry; dependence on acquisitions for growth; the Company's ability to manage growth; compliance with and future changes in environmental regulations; the Company's ability to obtain approval from regulatory agencies in connection with expansions at 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 Company's dependence on key personnel; general economic conditions; dependence on large, long-term collection contracts; risk 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.
SOURCE: Republic Services, Inc.
Contact: Will Flower, Republic Services, 954-769-6392