Waste Management Inc. has closed the purchase of collection assets in three states from Allied Waste Industries.
The acquisition includes hauling operations in Myrtle Beach, S.C., Augusta, Ga., and Pitkin and Garfield Counties in Colorado. The company also noted that it expects to finalize the sale/purchase of collection, recycling and transfer assets in New Jersey pending the necessary state and local governmental approvals and other consents.
"Earlier this year, we announced that we would spend up to $375 million in 2003 on strategic acquisitions," said A. Maurice Myers, Chairman, president and CEO. "We view these assets as strategic 'tuck-ins' since they integrate nicely into our existing operations and in many cases allow us to internalize our own volumes."
Waste Management will divest certain waste hauling assets in Colorado, Georgia, South Carolina and New Jersey as part of an agreement with the Department of Justice. "It was not unexpected that this transaction would require divestitures of some assets," said Myers.
"Once the New Jersey transaction and the required divestitures are completed, the acquired operations are expected to increase the company's annual revenues by approximately $104 million," added Myers.
The Company also noted that it has entered into a letter of intent with Allied Waste to purchase approximately $75 to $80 million in annual revenue in South Florida.