Valued $75 million at $100 million cross-selling revenue opportunities between Republic’s existing businesses $1.5 billion manufacturing portfolio and US Ecology’s $1 billion wallet
Provides customers with a single partner to manage their multiple waste streams efficiently and sustainably through a national footprint of vertically integrated assets
The transaction is expected to be immediately accretive to adjusted earnings and free cash flow, with $40 million cost synergies expected over the first three years
PHOENIX, May 2, 2022 /PRNewswire/ — Republic Services, Inc. (NYSE:RSG) today announced that it has completed the acquisition of all outstanding shares of US Ecology, Inc. (NASDAQ-GS:ECOL) on May 2, 2022. The previously announced purchase price of $48 per share in cash represents a total value of $2.2 billion of which net cash debt acquired. The US Ecology stock will be delisted from the NASDAQ Global Select Market.
This transaction expands Republic’s environmental solutions footprint across the United States and Canada and provides vertically integrated capabilities for its environmental solutions business. It also provides a platform for accelerated growth, including cross-selling revenue opportunities and additional complementary acquisitions.
“We are thrilled to welcome US Ecology employees to the Republic team,” said Jon Vander Ark, President and CEO. “With US Ecology’s deep expertise in specialty waste treatment, this acquisition strengthens our position as a leading environmental services company offering one of the most comprehensive sets of products and services to our customers.”
Republic financed the transaction using a combination of its credit facilities and a new three-year term loan. The Company expects to maintain a strong balance sheet and a solid investment-grade credit profile, and expects the net debt to EBITDA ratio, as defined in its credit agreement, to return to below 3x within 18 months.
For more information about the company’s enhanced environmental solutions offerings, visit republicservices.com/usecology.
About Republic Services
Republic Services, Inc. is a leader in the US environmental services industry. Through its subsidiaries, the company provides superior service offerings while partnering with its customers to create a more sustainable world. For more information, visit RepublicServices.com, or follow us at Facebook.com/RepublicServices, @RepublicService on Twitter or Republic Services on LinkedIn.
The Company participates in investor presentations and conferences throughout the year. Interested parties can find a schedule of these conferences at RepublicServices.com.
INFORMATION REGARDING FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking information about us that is intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. . Words such as ‘direction’, ‘expect’, ‘will’, ‘may’, ‘anticipate’, ‘plan’, ‘estimate’, ‘project’, ‘intend’, ‘should’ , “may”, “probable”, “”could”, “outlook” and similar expressions are intended to identify forward-looking statements. These statements include information about our plans, strategies and prospects. Forward-looking statements are not guarantees These statements are based on the current beliefs and expectations of our management and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed, implied or projected by the information. and forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot assure you that the expectations will prove to be correct. Among the factors that could that cause actual results to differ materially from the expectations expressed in the forward-looking statements include the effects of the COVID-19 pandemic and actions taken in response thereto, acts of war, riots or terrorism, and the impact of these acts on economic, financial and social conditions in the United States as well as our dependence on large long-term collection, transfer and disposal contracts, the risk that the transaction with US Ecology disrupts Republic’s current plans and operations, including distracting management’s attention from ongoing business operations, the outcome of any legal or regulatory proceedings related to the merger agreement or the transaction, Republic’s ability to successfully integrate US Ecology’s operations and service offerings, and Republic’s ability to implement its plans, forecasts and other expectations regarding the business of ‘US Ecology and realize additional growth opportunities. Further information about factors that could cause actual results or events to differ materially from those anticipated is included from time to time in our reports filed with the Securities and Exchange Commission (“SEC”), including our quarterly report on Form 10-Q for the quarter ended September 30, 2021, including under Part II, Item 1A – Risk Factors. In addition, new risk factors emerge from time to time and it is impossible for us to predict all of these risk factors or to assess the impact that these risk factors may have on our business. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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SOURCE Republic Services, Inc.