Waste Connections, Inc.is an integrated municipal solid waste (NYSE:WCN) services company that provides solid waste collection, transfer, disposal and recycling services.
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Waste Connections shareholders will own 70 percent of the company, and Progressive shareholders will take 30 percent.
In other Waste Connections news, CFO Worthing Jackman sold 19,375 shares of the stock in a transaction on Tuesday, November 10th.
The announcement comes two weeks after Progressive confirmed it was reviewing its strategic options.
Waste Connections is based in The Woodlands, Texas, but previously was headquartered in California.
The $24.55 per share offer represents a premium of 4.4 percent to the closing price of Progressive Waste’s U.S.-listed stock.
“Some of that could have been lost if we had structured it with a traditional Waste Connections acquisition of Progressive”, Ronald Mittelstaedt, Waste Connections chairman and CEO, told analysts in a conference call.
“We welcome Progressive Waste’s talented employees and recognize their significant value to the customers and communities they serve”, he says.
The merger will yield a North American…
Shares of Waste Connections, Inc.
With proforma revenue of about $4.1-billion, the combination will command a market share of about 7 per cent, Barclays analyst Jon Windham wrote in a note to clients. R. M. Davis now owns 828,169 shares of the company’s stock worth $46,642,000 after buying an additional 12,305 shares during the last quarter. “This attractive credit profile, combined with sector-leading conversion of EBITDA to free cash flow, provides not only a strong financial foundation for our employees and communities, but also the ability to further enhance shareholder returns through additional growth opportunities and share repurchases”, they add.
The company also recently declared a quarterly dividend, which was paid on Friday, January 15th.
The deal is expected to close in the second quarter.
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