Republic Services, Inc. and US Ecology, Inc. have entered into a definitive agreement under which Republic Services will acquire all outstanding shares of US Ecology for $48 per share in cash, representing a total value of approximately $2.2 billion including net debt of approximately $0.7 billion.
US Ecology is a provider of environmental solutions offering treatment, recycling and disposal of hazardous, non-hazardous and specialty waste. US Ecology’s trailing 12-month revenue as of September 30, 2021, was $968 million and adjusted EBITDA was $156 million.
The transaction is not subject to a financing condition. Republic Services intends to finance the transaction using existing and new sources of debt.
Following completion of the transaction, Republic Services expects to maintain a strong balance sheet and solid investment-grade credit rating.
The transaction was unanimously approved by the boards of directors of both companies and is expected to close by the end of the second quarter, subject to the satisfaction of customary closing conditions, including receipt of regulatory approvals and approval by holders of a majority of the outstanding shares of US Ecology’s common stock.
The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, which applies to the proposed acquisition by Republic Services of US Ecology, expired at 11:59 p.m. Eastern Time, on March 30, 2022. The transaction is expected to close during the second quarter, subject to approval by US Ecology’s stockholders and satisfaction of the remaining conditions to closing.
Published in the May 2022 Edition