(Reuters) - Waste Management Inc said on Monday it would buy smaller rival Advanced Disposal Services Inc for about $3 billion, as the top waste management services provider looks to expand its footprint in the eastern United States.
The offer of $33.15 represents a premium of about 22 percent to Advanced Disposal’s closing price of $27.14 on Friday and would be Waste Management’s biggest acquisition in more than nine years.
The acquisition is expected to generate more than $100 million in savings and capital expenditures annually after close, which is expected by the first quarter of 2020.
Houston-based Waste Management provides waste management environmental services, and owned or operated 247 solid waste landfills and five secure hazardous waste landfills as of December 2018.
Advanced Disposal, based in Ponte Vedra, Florida, is the fourth-largest solid waste company in the United States and provides non-hazardous solid waste collection, transfer, recycling and disposal services in 16 states and the Bahamas.
Advanced Disposal had a net debt of about $1.9 billion, Waste Management said.
The Wall Street Journal was the first to report that the companies were in deal talks.
Reporting by Ankit Ajmera and Ishita Chigilli Palli in Bengaluru, Editing by Sherry Jacob-Phillips and Sriraj Kalluvila
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