August 4, 2015
Inland Waste Solutions LLC has acquired certain assets from Waste Management Inc.’s Deffenbaugh Disposal Inc. subsidiary, in connection with the Justice Department’s ruling on the Waste Management buy of Deffenbaugh earlier this year.
Inland Waste, based in Austin, Texas, has purchased commercial assets from Deffenbaugh in the markets of Bethel Heights, Ark.; Fort Smith, Ark.; and Topeka, Kan.
“The acquisition of the Deffenbaugh divestiture assets aligns perfectly with our growth plan and builds tremendous value for Inland,” said Inland CEO Bart Begley, in a news release. “It also increases our route density and allows for the company to realize synergistic cost savings.”
Inland management has doubled in size in the past three years as it has expanded its operations to provide residential, commercial and industrial collection in markets in seven states.
MUFG Union Bank N.A. provided the funding for the transaction through a senior-secured debt facility, and the bank’s Environmental Group managed the transaction.
The deal complies with the U.S. Department of Justice requirement that Houston-based Waste Management and Kansas City, Kan.-based Deffenbaugh divest certain small container commercial waste routes in Topeka, Bethel Heights and Van Buren, Ark.
In March Waste Management completed its purchase of Deffenbaugh. It added about $180 million in revenue through a deal that cost the company more than $400 million. The acquisition went through after Waste Management agreed with the Justice Department to divest small and commercial waste collection assets in Arkansas and Kansas.
Deffenbaugh collects more than 1.7 million tons of waste and recyclable material, employs about 1,000 and provides waste and recycling service for the Kansas City metropolitan area; Omaha, Neb.; and St Joseph, Mo., as well Topeka and northwest Arkansas.
Last month Waste Management reinvested in the Arkansas market with the buy of D.C. Trash Service in Russellville, Ark.