U.S.-based solid waste collection company Waste Connections Inc it agreed to buy Canada’s Progressive Waste Solutions Ltd for $2.67 billion to expand in Canada. The $24.55 per share offer represents a premium of 4.4 percent to the closing price of Progressive Waste’s U.S.-listed stock. The combined company, which will have pro-forma revenue of about $4.1 billion, will be domiciled in Canada after the deal closes in the second quarter of 2016.
The deal will result in more than $625 million of adjusted free-cash flow generation for the combined company in the first year from tax-effected synergies, capital expenditure discipline and other cash flow benefits. Waste Connections shareholders will own about 70 pct of the combined company, and Progressive Waste shareholders will own about 30 percent, the companies said. The combined company will be led by Waste Connections’ current management team.
From www.reuters.com/article/us-progressive-wst-m-a-waste-connection-idUSKCN0UX1D0.