Progressive Waste enters into merger agreement with Waste Connections

Progressive Waste Solutions (BIN) has announced it will merge with Waste Connections Inc. in an all-stock deal, with the combined companies to operate out of a headquarters in Canada, reports The Wall Street Journal.

Once the deal goes through, Waste Connections stockholders will own about 70% of the combined company, with Progressive Waste shareholders taking the remaining 30%.

Progressive Waste Solutions Waste Connections

Progressive Waste enters into merger agreement with Waste Connections

The transaction will take the form of a reverse merger, with Texas-based Waste Connections buying Toronto-based Progressive Waste Solutions with a mind to set up shop in Canada, thus avoiding a higher U.S. tax rate.

The deal, valued at about $2.7 billion on the basis of Friday’s closing price of $24.55 for each Progressive Waste share, will mean that the Progressive Waste Solutions name becomes redundant, with the combined companies adopting the Waste Connections name.

The prevailing company is expected to trade on the New York Stock Exchange and the Toronto Stock Exchange.

In announcing the merger, Progressive said that chief operating officer Kevin Walbridge and chief financial officer Ian Kidson had both stepped aside, with Dan Pio, executive vice president of strategy and business development, assuming the position of chief integration officer. Meanwhile, William Herman, vice president and chief accounting officer, was named chief financial officer.

The deal coincides with Progressive shares being at their lowest price for two years. In contrast, Waste Connections has been on steady incline since 2009, with shares more than tripling in price in that period.

“Combining Progressive Waste and Waste Connections makes compelling strategic and financial sense, and the all-stock nature of the transaction provides Progressive Waste shareholders with the opportunity to participate in the significant near- and long-term upside potential of the combination,” said Joseph Quarin, president and chief executive officer of Progressive Waste.

Progressive Waste Solutions Ltd. is a Concord, Ontario based waste management company. The Company provides non-hazardous solid waste collection, recycling and disposal services to commercial, industrial, municipal and residential customers in approximately 13 United States and the District of Columbia and six Canadian provinces. The Company conducts its business through three geographic regions: the East, West and North regions. The Company’s East region includes Florida, New York, New Jersey, Pennsylvania, Maryland, Virginia and the District of Columbia. The West region includes Texas, Louisiana, Oklahoma, Arkansas, Mississippi, Missouri and Illinois. The North region includes the Canadian provinces of British Columbia, Alberta, Manitoba, Saskatchewan, Ontario and Quebec. More from Reuters »

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