Waste Connections, Inc. and Progressive Waste Solutions Ltd. have agreed to merge in an all-stock transaction, creating a $4.1 billion company with a network of solid waste operations across North America. Upon the completion of the transaction, Waste Connections stockholders will own approximately 70% of the combined company, and Progressive Waste shareholders will own approximately 30%. The transaction, unanimously approved by the board of directors of both companies, is expected to close in the second quarter of 2016. The combined company will use the Waste Connections name and it is anticipated that its shares will trade on the New York Stock Exchange and the Toronto Stock Exchange.
The combined company – the third-largest waste and recycling company behind Waste Management Inc. and Republic Services Inc. – will sort and bale recyclables at dozens of recovery facilities, according to Plastics News.
The combination of Waste Connections’ differentiated position in mostly secondary and exclusive US markets with Progressive Waste’s strong position in Canada and complementary US markets, particularly in its commercial services line, will result in a high quality of revenue, margin and free cash flow, the companies say.