Republic Acquires Allied Waste
The boards of directors for Republic Services Inc., Fort Lauderdale, Fla., and Allied Waste Industries Inc., Phoenix, have approved a merger between the two companies, which are the second and third largest waste management firms in the United States. The newly formed company will be called Republic Services and will be headquartered in Phoenix
The combined company will serve more than 13 million customers in 40 states and Puerto Rico.
James O’Connor, Republic’s chairman and CEO, will head the combined company.
"The vertically integrated model of the combined company—linking collection, transfer, recycling and disposal services—enhances cash flow, earnings and return on capital for our shareholders, while reducing our risk," O’Connor says. "Our strategic focus remains on improving return on invested capital, reducing debt and generating higher levels of free cash flow. At the same time, our business model will blend the best practices and complementary assets of the two companies to provide unmatched customer service and operating efficiency. Our employees will benefit from the enhanced career opportunities that result from a larger company better positioned for future success."
Republic has an extensive presence in the Sunbelt markets, an established franchise business and a strong capital structure.
Allied has a national footprint, an innovative procurement platform and significant internalization opportunities.
The two companies expect regulatory reviews and approvals to be completed in four to six months and the transaction is expected to close by the fourth quarter of this year.
Shortly following the announcement of the merger, Houston-based Waste Management made a proposal to Republic’s board of directors to acquire all of Republic’s outstanding common stock for $34 per share in cash.
Allied Waste, RecycleBank Announce Partnership
Allied Waste Industries, Phoenix, and RecycleBank, New York City, have announced a partnership to launch a nationwide recycling incentive program.
The goal of the partnership is to bring together Allied Waste’s 7 million residential customers with RecycleBank’s incentive program that provides rewards to customers who recycle.
Consumers in nine Northeastern and Midwestern states have access to the RecycleBank program currently. By the end of next year, Allied Waste and RecycleBank say they plan to add at least 1 million residential customers to the program.
"Our partnership with RecycleBank is another way in which we are continuing our long history of providing innovative solutions to our customers while also being strong stewards of our environment," Jay Leyden, senior vice president of customer development at Allied Waste, says. "By matching our national reach and state-of-the-art recycling centers with RecycleBank’s creative incentive program, we create a great opportunity that can benefit millions of customers, the participating retailers and, ultimately, the environment."
The partnership will be launched in Dallas/Ft. Worth, Los Angeles and Minneapolis/St. Paul. The companies say they expect to expand the program to include all of Allied Waste’s remaining markets across the U.S. during early 2009.
Philadelphia Expands Single-Stream Recycling
Philadelphia Mayor Michael Nutter has unveiled a citywide single-stream recycling program, which, the mayor claims, makes the city the largest on the East Coast to move to a citywide, single-stream recycling program.
"Single-stream recycling has proven so effective in increasing the amount of recyclables collected, and we will build upon that success as we expand citywide," Nutter says.
Since the project began in 2006, recycling is up 35 percent in the sections of Philadelphia with single-stream collection. A total of 540,000 Philadelphia households now can participate in the single-stream program using any bin they have available, as long as it is properly labeled "recycling."
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