Waste Management, Inc. (NYSE:WM) saw its shares gain momentum at Monday’s open, after it announced plans to acquire Advanced Disposal for $4.9 billion.
The Houston-based environmental solutions company announced it will acquire all outstanding shares of Advanced Disposal for $33.15 per share in cash, representing a total enterprise value of $4.9 billion when including approximately $1.9 billion of Advanced Disposal’s net debt.
The per share price represents a premium of 22.1% to Advanced Disposal’s closing share price as of April 12,, the last trading day prior to today’s announcement, and a premium of 20.9% to Advanced Disposal’s 30-day volume weighted average price as of the same date.
The acquisition advances Waste Management’s growth strategy and aligns with the Company’s financial goals, including growth in earnings per share, margins, and cash flow.
According to Monday morning’s news release, this acquisition also brings a high-quality, complementary asset network and customer base under Waste Management’s proven management team, who has a track record of operational excellence and a demonstrated ability to grow the margins and cash flows of the assets Waste Management has acquired.
Following completion of the transaction, the release went on to say, Waste Management expects to maintain a strong balance sheet and solid investment grade credit profile with a pro forma leverage ratio within the Company’s long-term targeted net debt-to-EBITDA range of 2.75x to 3.0x.
Shares jumped $2.93, or 2.9%, to $104.72
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