Toronto -- BFI Canada Income Fund, Toronto, Ontario, and Ft. Worth, Texas-based IESI Corp. have agreed to a $1.1 billion merger. Under the agreement, BFI Canada will indirectly acquire 100percent of IESI common stock and the companies will combine. The current equity investors in IESI will retain a 39 percent indirect interest stake in BFI Canada.
The merger, which has been approved by both companies’ boards, is expected to add 12 percent to BFI Canada’s cash distributions per unit, the company says. The transaction is expected to close on or before Jan. 31, 2005.
"The combination with IESI achieves one of BFI Canada's key strategic objectives of establishing a meaningful and profitable presence in the approximately $42-billion-U.S. non-hazardous solid waste management industry," BFI President and Chief Executive Keith Carrigan said in a press release.
IESI provides waste collection, transfer, recycling and disposal services in nine states in the southern and northeastern regions of the United States. BFI Canada, which employs 700 people, provides the same services in the Canadian provinces of British Columbia, Alberta, Manitoba, Ontario and Quebec.
BFI Canada’s management team will lead the combined business, with Carrigan as CEO and Joseph Quarin, current chief financial officer of BFI Canada, remaining in his current role. Mickey Flood, IESI's founder and CEO, will be executive vice president of the combined company, as well as president and CEO of IESI.