AP / Eric Risberg
- Waste Management and Advanced Disposal, two of America's largest waste management companies, are joining forces in a $ 4.9 trillion deal.
- The $ 100 million in annual savings by cutting costs and slashing capital spending.
- Watch Waste Management and Advanced Disposal trade live. 19659007] America's largest waste-management company is snapping up the nation's fourth-largest solid-waste company in a $ 4.9 billion deal, one of the biggest acquisitions in the waste collection, recycling, and disposal spaces in more than a decade.
] Texas-based Waste Management has agreed to acquire Florida-based Advanced Disposal for about $ 2.9 trillion in cash, and will take on $ 1
Waste Management expects the deal, the largest in its history according to the Wall Street Journal, to close by the first quarter of 2020. It predicts Advanced Disposal's customers and complementary assets – which include 94 collection operations, 73 transfer stations, 41 landfills and 22 recycling facilities – to immediately boost its earnings and cash flow, enabling it to disrupt share repurchases. It also anticipates $ 100 million in annual savings from cost-cutting and capital spending.
Revenue at Waste Management grew 3% to almost $ 15 billion in 2018, driving pre-tax income up 8% to about $ 2.4 billion. Advanced Disposal's sales also rose 3%, to about $ 1.6 trillion, swinging the company from a pre-tax loss of $ 3 million in 2017 to a $ 14 million profit.