- Estimated $75 million to
$100 million of cross-selling revenue
opportunity between Republic's existing $1.5
billion manufacturing portfolio and US Ecology's
$1 billion portfolio
- Provides customers a single partner to manage their multiple
waste streams efficiently and sustainably through a national
footprint of vertically integrated assets
- Transaction expected to be immediately accretive to adjusted
earnings and free cash flow, with $40
million of cost synergies expected to be achieved within the
first three years
PHOENIX, May 2, 2022
/PRNewswire/ -- Republic Services, Inc. (NYSE: RSG) announced today
that it completed its acquisition of all outstanding shares of US
Ecology, Inc. (NASDAQ-GS: ECOL) on May
2, 2022. The previously announced purchase price of
$48 per share in cash represents a
total value of $2.2 billion
including debt net of cash acquired. US Ecology stock will be
delisted from the NASDAQ Global Select Market.
This transaction expands Republic's environmental solutions
footprint across the U.S. and Canada and provides vertically integrated
capabilities for its environmental solutions business. It also
provides a platform for accelerated growth, including cross-selling
revenue opportunity and additional tuck-in acquisitions.
"We are excited to welcome US Ecology employees to the Republic
team," said Jon Vander Ark, president and chief executive officer.
"With US Ecology's deep expertise in specialty waste handling, this
acquisition strengthens our position as a leading environmental
services company offering one of the most complete sets of products
and services to our customers."
Republic funded the transaction using a combination of its
credit facilities and a new three-year term loan. The Company
expects to maintain a strong balance sheet and solid
investment-grade credit profile, and plans net debt-to-EBITDA, as
defined in its credit agreement, to return to below 3x within 18
months.
More information about the Company's enhanced environmental
solutions offerings can be found at
republicservices.com/usecology.
About Republic Services
Republic Services, Inc. is a leader in the U.S. environmental
services industry. Through its subsidiaries, the Company provides
superior service offerings while partnering with customers to
create a more sustainable world. For more information, visit
RepublicServices.com, or follow us at
Facebook.com/RepublicServices, @RepublicService on Twitter or
Republic Services on LinkedIn.
The Company participates in investor presentations and
conferences throughout the year. Interested parties can find a
schedule of these conferences at RepublicServices.com.
INFORMATION REGARDING FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking information
about us that is intended to be covered by the safe harbor for
"forward-looking statements" provided by the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are
statements that are not historical facts. Words such as "guidance,"
"expect," "will," "may," "anticipate," "plan," "estimate,"
"project," "intend," "should," "can," "likely," "could," "outlook"
and similar expressions are intended to identify forward-looking
statements. These statements include information about our plans,
strategies and prospects. Forward-looking statements are not
guarantees of performance. These statements are based upon the
current beliefs and expectations of our management and are subject
to risk and uncertainties that could cause actual results to differ
materially from those expressed in, or implied or projected by, the
forward-looking information and statements. Although we believe
that the expectations reflected in the forward-looking statements
are reasonable, we cannot assure you that the expectations will
prove to be correct. Among the factors that could cause actual
results to differ materially from the expectations expressed in the
forward-looking statements are the effects of the COVID-19 pandemic
and actions taken in response thereto, acts of war, riots or
terrorism, and the impact of these acts on economic, financial and
social conditions in the United States as well as our
dependence on large, long-term collection, transfer and disposal
contracts, the risk that the transaction with US Ecology disrupts
current plans and operations of Republic, including by diverting
management's attention from ongoing business operations, the
outcome of any legal or regulatory proceedings related to the
merger agreement or the transaction, the ability of Republic to
successfully integrate US Ecology's operations and service
offerings, and the ability of Republic to implement its plans,
forecasts, and other expectations with respect to US Ecology's
business and realize additional opportunities for growth. More
information on factors that could cause actual results or events to
differ materially from those anticipated is included from time to
time in our reports filed with the Securities and Exchange
Commission ("SEC"), including our Quarterly Report on Form 10-Q for
the quarter ended September 30, 2021, particularly under Part
II, Item 1A - Risk Factors. Additionally, new risk factors emerge
from time to time and it is not possible for us to predict all such
risk factors, or to assess the impact such risk factors might have
on our business. We undertake no obligation to update publicly any
forward-looking statements whether as a result of new
information, future events or otherwise, except as required by
law.
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SOURCE Republic Services, Inc.
