WCA Waste Corp. is being bought by investment firm Macquarie Infrastructure Partners II (MIP II), for approximately $526 million.
Under the agreement, New York-based MIP II, part of the Sydney-based Macquarie Group, will acquire all of the outstanding common stock of Houston-based WCA for $6.50 per share in cash, redeem all Series A preferred stock and either partially or completely refinance WCA's existing credit facilities.
The price is a premium of 30 percent over WCA's closing stock price on December 20, the companies said in a news release.
WCA ranked 18th on the Waste Age 100, with 2010 revenue of $230 million and 1,286 employees. The company operates 25 landfills, 29 transfer stations and 29 collection operations. It serves approximately 450,000 customers in 14 states in the Southeast and Midwest US.
"We are excited about the company that we have built to date and are pleased to be partnering with MIP II as we enter into our next phase of growth," said Tom J. Fatjo Jr., WCA's chairman and CEO. "Macquarie Group has a demonstrated track record in the waste-management sector. Our employees and customers will benefit from their operational knowledge and should not see any impact on day-to-day services. Our investors will also benefit as this transaction provides an excellent opportunity to realize value."
"The acquisition of WCA represents an attractive opportunity for Macquarie Infrastructure Partners II," said Christopher Leslie, MIP II CEO. "The management team at WCA has done an excellent job in building successful operations across many geographies. This acquisition will leverage our existing industry knowledge and help us to expand and diversify MIP II's North American portfolio."
WCA’s board of directors has approved the deal, and pending other approvals, the parties expect to complete the transaction in the first quarter of 2012.
MIP II will finance the transaction through a combination of shareholder capital and new underwritten credit facilities.