During its third quarter 2018 earnings call, Toronto-based Waste Connections Inc. teased a soon-to-be-finalized, large acquisition. And today, the company revealed it has acquired American Disposal Services, Inc. and certain affiliates, one of the largest privately-owned solid waste collection and recycling businesses in the Mid-Atlantic. American Disposal has total annualized revenues of approximately $175 million and serves about 400,000 customers in Virginia, Maryland, Georgia and Colorado.
“American is the market leader in Northern Virginia, where the majority of its assets are located,” said Ronald J. Mittelstaedt, CEO and chairman of Waste Connections, in a statement. “In addition to providing new market platforms for future growth opportunities in both Virginia and Georgia, this acquisition also enhances our market positioning in Denver, where American’s collection services will be tucked into our vertically integrated operations. We are excited to welcome American into the Waste Connections family.”
The acquisition, according to Mittelstaedt, is expected to bring total acquired annualized revenues to approximately $360 million in 2018.
“Rollover contribution from these acquisitions plus price-led organic growth already position us for between 8 percent and 10 percent revenue growth and continued margin expansion in 2019, with any additional transactions providing further growth,” said Mittelstaedt on a call with investors. “Moreover, we announced another double-digit percentage increase in the quarterly cash dividend, once again demonstrating that we remain well positioned to increase our return of capital to shareholders while continuing to fund above average acquisition activity.”