Waste Connections Inc. has agreed to buy oil field waste treatment and disposal company R360 Environmental Solutions Inc. for approximately $1.3 billion in cash.
R360 provides non-hazardous oilfield waste treatment, recovery and disposal services for natural resource producing areas in the United States with annual revenue of about $300 million. It operates 26 facilities in Louisiana, New Mexico, North Dakota, Oklahoma, Texas and Wyoming, the Woodland, Texas-based Waste Connections said in a news release.
Waste Connections expects the transaction to close in the fourth quarter of this year, subject to certain closing conditions.
“This acquisition represents a natural extension of our existing E&P [exploration and production] disposal activities," said Ron Mittelstaedt, Chairman and CEO of Waste Connections. "While a tepid economy has impacted MSW [municipal solid waste] volumes, increased drilling activity in unconventional areas is fueling impressive organic growth within the E&P waste sector.”
He added that R360 is actively permitting several new sites to further expand its operations.
R360 has about 11 landfills with about two-thirds of its business in solids and the rest liquids, according to a newsletter published by Michael Hoffman, managing director of Wunderlich Securities Inc.