Waste Services (WSII) Completes Acquisition of Assets of Republic Services (RSG); Deal to Add 5-7c to FY10 Results

October 5, 2009 3:37 PM EDT

Waste Services, Inc. (Nasdaq: WSII) completed an acquisition of the operations and related assets of Republic Services, Inc. (NYSE: RSG) in Miami-Dade County, Florida. In a separate transaction on September 1, 2009, Waste Services, Inc. acquired the Miami-Dade operations of DisposAll, Inc.

David Sutherland-Yoest, President and Chief Executive Officer of Waste Services, stated, "We are very pleased to announce the completion of these two highly accretive acquisitions. Our strategic assets in the region allow us to internalize disposal from the acquired businesses and to realize significant operating cost savings."

The combined purchase price of the two acquisitions is $48 million. Certain assets, including operating facilities, will become redundant and be sold to reduce the investment. The acquisitions are expected to add approximately $28 million in annual revenue and $12.5 million in EBITDA after synergies are realized. Waste Services intends to internalize all of the waste flow from both acquisitions through its centrally located Miami-Dade transfer station in to the JED landfill.

"The acquired customers will be integrated into our existing route structure within 60 to 90 days, adding 25 net new routes as compared to the 40 routes previously operated. These acquisitions are expected to add from 5 to 7 additional cents per share to our 2010 results, contribute to our continuing trend of margin expansion, add free cash flow in excess of $6 million, and in the near term will put us at the top of our EPS guidance for 2009."

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