Waste Connections Inc (TSE:WCN, Mkt cap 18.46B, P/E 42.35, Div/yield 0.24/0.91, EPS 2.50, Shares 175.43M) announced last week that it has acquired Groot Industries, Inc., the largest independent solid waste services provider in Illinois.
It's the company's first acquisition since the merger of Progressive Waste Solutions Ltd. and Waste Connections, Inc. in June 2016.
Groot has provided solid waste collection and other public services to northeastern Illinois municipalities and businesses since 1914. The company serves approximately 300,000 customers from a network of six collection operations, six transfer stations and two recycling facilities. Its total annual revenue is approximately $200 million.
The addition of Groot builds on Waste Connections' November 2015 acquisition of Rock River Environmental Services, Inc., which serves 19 counties in central and northern Illinois from a network of five collection operations, two landfills, one compost facility, one transfer station and one recycling facility.
Welcoming the latest acquisition, Ronald J. Mittelstaedt, CEO and chairman of Waste Connections, said: "Groot is one of the most respected and best in class companies in our industry. With a majority of its operations contiguous to the Rock River assets we acquired in November 2015, Groot solidifies our leading position in these markets, increases potential internalization benefits of their disposal volumes into our existing landfills, and further expands our platform for additional growth opportunities."
Groot Industries' Jon Groot and Ryan Brandsma said in a statement that they had previously "looked to acquire Rock River given the obvious merits of such a combination, and are excited to be together under Waste Connections".
Waste Connections Inc (TSE:WCN), formerly Progressive Waste Solutions Ltd, is a Concord, Ontario based waste management company. The Company provides waste collection, recycling and disposal services to commercial, industrial, municipal and residential customers in over 10 states in the United States, and the District of Columbia, and in over six Canadian provinces. The Company operates through three segments: the East, the West and the North. The business segments are vertically integrated and their operations include the collection and disposal of waste and recyclable materials, transfer station operations, material recovery facilities, landfills and landfill gas to energy facilities. The Company offers various solutions for business, residential and public sector. The Company offers commercial, industrial and manufacturing, construction and demolition, and Leadership in Energy and Environmental Design (LEED) services, among others for business. More from Reuters »
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