Divestiture Days

Firms buy assets that Feds ordered Republic to sell.

In early April, Advanced Disposal Services acquired a portion of the assets that the federal government ordered Republic Services to sell following the firm's recent merger with Allied Waste Services. The purchase follows acquisitions of divested Republic/Allied assets by Folsom, Calif.-based Waste Connections.

Jacksonville, Fla.-based Advanced Disposal acquired 13 commercial waste collection routes and two municipal solid waste (MSW) transfer stations in the metropolitan Atlanta area. The commercial operations include front-load routes in Gwinnett, Hall and Walton counties. The transfer stations, located in Gwinnett and Cobb counties, also accept construction and demolition debris.

“This transaction represents Advanced Disposal's continued growth in existing markets to better optimize our Atlanta collection operations and greater disposal internalization through the two MSW transfer stations,” said Charlie Appleby, the firm's CEO, in a press release.

In March, Waste Connections reached an agreement to buy the Potrero Hills Landfill in Suisun City, Calif., from Phoenix-based Republic. Terms of the transaction, which is expected to close in the second quarter of this year, were not disclosed.

Earlier this year, Waste Connections agreed to purchase a variety of divested assets from Republic for $310 million. The agreement includes six MSW landfills, three collection operations and three transfer stations in seven markets. The markets are Southern California; Charlotte, N.C.; Denver; Flint, Mich.; Greenville/Spartanburg, S.C.; Houston; and Lubbock, Texas. The sale also is expected to close in the second quarter. Waste Connections says the 12 assets will generate nearly $110 million of revenue each year.

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