Wednesday, March 22

Waste disposal firm Republic Services to buy rival US Ecology in $2.2 bln deal

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Waste disposal company Republic Services Inc said on Wednesday it would buy smaller rival US Ecology Inc in an all-cash deal valued at $2.2 billion, including net debt.

Republic’s offer of $48 per share represents a 33.6% premium to US Ecology’s last close on Friday.

The deal would help Republic expand its footprint across the United States and Canada and be accretive to its adjusted earnings and free cash flow, the company said.

Shares of US Ecology rose about 28% premarket, while those of Republic remained flat.

Republic said it intends to finance the transaction using existing and new sources of debt. (Reporting by Aishwarya Nair in Bengaluru; Editing by Ramakrishnan M.)