Republic Services Agrees To Acquire US Ecology At 70% Premium

  • 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.

Posted In: Briefswhy it's movingM&ANewsSmall CapMoversTrading Ideas

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.