Progressive Waste Solutions Ltd., which has agreed to merge with Waste Connections Inc., has appointed Dan Pio CEO of the company and said that Joseph Quarin, current CEO and president, is leaving the firm.
Pio, who was just named executive vice president and chief integration officer when the proposed merger of the two firms was announced earlier this month, takes over the new role Jan. 29, according to a statement.
Quarin, who also is leaving his position on the Vaughan, Ontario-based company’s board of directors, is departing to pursue other opportunities. Quarin had planned to step down during the integration period for the joining of the industry’s third and fourth biggest waste haulers.
Pio has been leading Progressive’s integration efforts with The Woodlands, Texas-based Waste Connections. He now will also assume primary responsibility for Progressive Waste’s operations through the merger process. The deal is expected to close in the second quarter.
St. Louis-based financial firm Stifel, Nicolaus & Co. Inc., with managing director Michael E. Hoffman, said in its published report on the issue that it was not alarmed by the continued executive changes at Progressive Waste. “None of these are unexpected by Waste Connections and fit into its post-merger organizational plan.”
Stifel said the changes close the door on any chance of a second bidder on the deal. The breakup fees, management departures and the shutdown of the leverage finance marketplace make a the chance of a second bidder emerging “very remote.”
Pio’s appointment is not a surprise, the company said, and it sets up his role as regional vice president of Canada upon closing of the merger.
James Forese, non-executive chairman for Progressive, said, "Dan is doing an excellent job leading the integration from the Progressive Waste Solutions side, and the board believes he is the right person to assume the responsibilities of the CEO role and take the merger across the finish line.”
On Quarin, he said, "On behalf of the entire board, I want to thank Joe for his contributions to Progressive Waste Solutions over the past 16 years. His leadership and dedication have played an important role in getting the company to this significant milestone, and we wish him all the best in his future endeavors."
Quarin said, "It has been an honor and a privilege to lead Progressive Waste Solutions for the past four years as CEO, and I am extremely proud of what we have accomplished together. I am confident that the company will be in good hands with Dan and the integration team seeing the merger through to completion."
Pio joined Progressive Waste in 2010 as vice president and Canadian chief operating officer, and in 2013 became executive vice president, strategy and business development. He previously worked at Waste Management Inc.
"I look forward to leading Progressive Waste Solutions through this pivotal time in the company's history, and carrying on our work providing best-in-class service to our customers," Pio said. "I am excited about the value we will create with Waste Connections. The combination will secure a strong future for Progressive Waste Solutions and its stakeholders and provide a tremendous platform of opportunity for our employees."
A week ago the two companies announced the proposed merger into what will be a $4.1 billion company. When the deal is completed Waste Connections shareholders will own about 70 percent of the combined company, and Progressive Waste shareholders will own about 30 percent.
The combined company will be led by Waste Connections’ current management team.
In addition to the Pio announcement then, Progressive Waste also appointed William Herman executive vice president and interim chief financial officer, and Loreto Grimaldi executive vice president and chief legal officer. Kevin Walbridge, executive vice president and chief operating officer, and Ian Kidson, executive vice president and chief financial officer, stepped down to pursue other opportunities.