New York New York City just got a little bit bigger.
Waste Management Inc. (WMI), a subsidiary of WMX Technologies Inc., Oak Brook, Ill., has reached an agreement that allows it to enter the New York metropolitan region's $3 billion recycling and waste service market. The New York market reportedly generates approximately 9 percent of the waste industry's revenue in this country.
WMI officials said the decision to invest in the area was due to local officials' efforts to make the market more competitive.
Under the agreement, WMI will acquire the assets of ReSource N.E. Inc.,Brooklyn, N. Y., for approximately $200 million. ReSource reportedly is the city's largest recycling and waste processing company.
Resource's services include recycling, materials processing, recovery and product marketing. The company also has municipal collection contracts on Long Island and provides commercial waste collection services in Brooklyn, Queens and Manhattan.
Currently, ReSource processes approximately 5,000 tons of waste per day, with 6,000 commercial accounts and 20,000 residential accounts. The company employs more than 700 people.
In addition to this acquisition, WMI will consolidate its New York region assets into a new business unit, Waste Management of New York.
William P. Hulligan, a WMI executive vice president and an executive committee member for WMX, will be the organization's chairman, responsible for integration and continued expansion.