Republic Services to acquire US Ecology
Republic is active in the US biogas market, working with partners including Aria Energy, OPAL Fuels, and U.S. Gain to produce RNG. The company owns several landfills, from which the gas is captured and converted into RNG for multiple uses, including as a transport fuel.
The company will acquire all outstanding shares of US Ecology for $48 (€41) per share in cash, representing a total value of approximately $2.2 billion (€1.9 billion) including net debt of around $0.7 billion (€610 million).
The acquisition will add a national platform of difficult-to-replicate assets and talent to Republic, to provide customers with environmental solutions from collection through disposal. This includes adding nine speciality landfills with five hazardous waste landfills; 16 RCRA permitted treatment, storage and disposal facilities; seven wastewater treatment plants, and over 80 environmental services field locations, including treatment and recycling centres.
“Today’s announcement enables Republic Services to provide customers with one of the most complete sets of product offerings across the environmental services space and creates significant value for our stakeholders,” said Jon Vander Ark, the firm’s president and CEO.
“This strategic acquisition expands our geographic footprint across the US and Canada and provides vertical integration capabilities for our environmental solutions business.”
US Ecology is now in its 70th year of operations. Jeff Feeler, chairman, CEO and president at US Ecology, said the company is pleased with the acquisition agreement.
“The combination of our companies provides a platform to accelerate our common strategy of providing a full complement of environmental solutions to better our world,” commented Feeler.
“In addition, this transaction showcases the value of US Ecology’s business, providing our stockholders with attractive and certain value, and brings together a network of assets with extensive environmental solutions expertise to handle customers’ most challenging and complex needs.”