Date: October 25, 2012
Source: Waste Connections, Inc.
Waste Connections, Inc. (The Woodlands, TX) said it has completed its purchase of R360 Environmental Solutions Inc. (Houston, TX), an oilfield treatment and disposal services company, for $1.3 billion in cash. The deal is expected to increase Waste Connections' revenue run rate by about 28% and to add approximately 400 basis points to its consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA). R360, which was formed two years ago from the merger of several smaller companies, operates 26 facilities (11 landfills) that provide waste treatment, recycling, and disposal services across Louisiana, New Mexico, North Dakota, Oklahoma, Texas and Wyoming, and has annualized revenue of about $300 million.
In a conference call with investors, Waste Connections CEO Ron Mittelstaedt noted that while the acquisition represents a slight departure from the company's core business, the prospects for growth are significant. He said that domestic drilling for oil and gas is expected to increase 30 percent and production to increase 50 percent. More stringent environmental regulations will direct more of those wastes to companies like R360 for proper processing and disposal. The highly fragmented nature of that business, which is estimated to be between $2 billion and $2.5 billion, implies future acquisition opportunities that will ultimately improve market share and operating margins.
See also: "Waste Connections Makes Bold Play in Oilfield Waste for $1.3 Billion," (www.wasteinfo.com/news/wbj20120918A.htm), September 17, 2012.
PRESS RELEASE
October 25, 2012
Waste Connections Completes Acquisition Of R360 Environmental Solutions
Waste Connections, Inc. (NYSE: WCN) today announced that it has completed the acquisition of the business of R360 Environmental Solutions, Inc.
Waste Connections, Inc. is an integrated solid waste services company that provides waste collection, transfer, disposal and recycling services in mostly exclusive and secondary markets. Through its R360 Environmental Solutions subsidiary, the Company also is a leading provider of non-hazardous oilfield waste treatment, recovery and disposal services in several of the most active natural resource producing areas in the United States, including the Permian, Bakken and Eagle Ford Basins. Waste Connections serves more than two million residential, commercial, industrial, and exploration and production customers from a network of operations in 31 states. The Company also provides intermodal services for the movement of cargo and solid waste containers in the Pacific Northwest. Waste Connections, Inc. was founded in September 1997 and is headquartered in The Woodlands, Texas.
For more information, visit the Waste Connections web site at www.wasteconnections.com. Copies of financial literature, including this release, are available on the Waste Connections web site or through contacting us directly at (832) 442-2200.
For more information, contact:
Worthing Jackman / (832) 442-2266
worthingj@wasteconnections.com.
Mary Anne Whitney / (832) 442-2253
maryannew@wasteconnections.com.
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