Advanced Disposal Services Inc. has closed its purchase of Veolia ES Solid Waste Inc. for $1.91 billion.
The purchase will create the largest privately owned waste and recycling company in the United States with revenue of about $1.4 billion.
“A transaction of this magnitude takes time and significant efforts from all parties. I am extremely grateful to the teams from both Advanced Disposal and Veolia who contributed countless hours to make this strategic combination a reality,” said Charlie Appleby, chairman and CEO of Jacksonville, Fla.-based Advanced Disposal, in a news release.
The decision comes a week after the Department of Justice required Star Atlantic Waste Holdings L.P.. a unit of Highstar Capital and owner of Advanced Disposal, to agree to divest Veolia operations, including commercial waste collection or disposal assets in northern New Jersey, central Georgia, and the Macon, Ga., metropolitan area before the acquisition of Veolia could go forward.
The Washington-based Justice Department said in a news release that Star Atlantic along with Veolia ES must make the divestments because the transaction would have resulted in higher prices for municipal solid waste (MSW) collection from commercial businesses or the disposal of waste in these areas.
Under the proposed settlement, Star Atlantic and Veolia will divest three specified transfer stations in northern New Jersey; a landfill and two transfer stations in central Georgia; and three commercial waste collection routes in the Macon metropolitan area.
Chicago-based Veolia Environmental Services North America Corp. (VESNA) agreed in July to sell its U.S. solid waste operations to the New York-based investment firm Highstar.