Republic Services Agrees To Acquire US Ecology At 70% Premium - Republic Servs (NYSE:RSG)

Republic Services, Inc. RSG has agreed to acquire US Ecology Inc ECOL for $48 per share in cash, representing a total value of ~$2.2 billion, including net debt of ~$0.7 billion.
The acquisition price represents a premium of 70% to US Ecology's closing price of $28.17 on February 8, 2022.
US Ecology is a provider of environmental services to commercial and government entities, with trailing twelve-month revenue as of September 30, 2021, of $968 million and adjusted EBITDA of $156 million.
Republic Services expects the transaction to be immediately accretive to adjusted earnings and free cash flow; anticipates ~$40 million in cost synergies within three years following the acquisition, expected to result in double-digit returns.
Republic intends to finance the transaction using existing and new sources of debt.
The acquisition will allow Republic to provide customers a comprehensive set of environmental services, including recycling, solid waste, special waste, hazardous waste, container rental, and field services.
Republic Services held cash and cash equivalent of $122.9 million as of September 30, 2021.
The transaction is expected to close by the end of the second quarter.
"This strategic acquisition expands our geographic footprint across the U.S. and Canada and provides vertical integration capabilities for our environmental solutions business," said Republic Services CEO Jon Vander Ark.
Price Action: RSG shares are trading higher by 0.81% at $127.99 and ECOL higher by 68.7% at $47.52 on the last check Wednesday.

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