VAUGHAN, Ontario – GFL Environmental Inc. is buying WCA Waste Corporation and its subsidiaries for US$1.212 billion.
WCA operates a vertically integrated network of solid waste assets, including 37 collection and hauling operations, 27 transfer stations, three material recovery facilities and 22 landfills supported by over 1,000 collection vehicles, across 11 U.S. states.
WCA has an established regional platform with a growing footprint across the Midwest and Southeast U.S., including three key markets in Texas, Missouri and Florida and generates annualized revenue of approximately US$400 million.
The acquisition is expected to extend its geographical reach into the U.S. Midwest and Southeast, through a network with a strong presence in the States of Texas, Florida and Missouri.
Following completion of the acquisition of WCA and the divestiture assets from Waste Management and ADS, GFL will operate in nine provinces in Canada and in 27 states in the United States.
“We are excited to welcome almost 1,600 employees of WCA to the GFL family,” said Patrick Dovigi, the founder and CEO of GFL.
“Our multi-disciplinary integration team has a successful track record of integrating acquisitions like WCA and the Waste Management/ADS divestiture assets. We have been working on integration preparation of the divestiture assets since earlier this year.”
The acquisition is subject to certain customary closing conditions, including approval by the U.S. Department of Justice. Closing is expected to occur in the fourth quarter of 2020.
GFL also provided its outlook for 2020:.
Revenue is estimated to be between $4,040 million to $4,080 million
Adjusted EBITDA is estimated to be between $1,040 million to $1,060 million and Net loss is estimated to be between $459 million and $444 million
Cash flow from operating activities (before certain costs associated with our initial public offering and transaction costs) is estimated to be between $730 million and $750 million.