Allied Waste to Become Republic Industries: Headquarters in Phoenix
Phoenix-based Allied Waste Industries, the 2nd largest waste services firm in the nation, will merge with the 3rd largest, Fort Lauderdale-based Republic Industries, in a $6.2 billion deal with the headquarters to be in Phoenix. The merger is back on track according to a October 2008 joint press release from Allied and Republic. When the original merger was announced in June 2008, Waste Management, the nation's largest waste services company, made an unsolicited bid for Republic Industries a month later.
Phoenix-based Allied Waste will own 52 percent of the combined company, which will be led by Republic Chairman and CEO James E. O'Connor. Allied Waste's President and COO, Donald Slager, 46, will be the new President and COO. The Board will consist of 11 members, including O'Connor (Republic) as Chairman, five directors from the current Republic board and five directors from the current Allied board. The company will be based in Phoenix as Republic Services, Inc. traded under the ticker symbol RSG. The expected pro forma annual revenues should be approximately $9 billion with a total market capitalization of approximately $12 billion. The combined company will have more than 35,000 employees serving more than 13 million customers in 40 states and Puerto Rico. The transaction is expected to close by the fourth quarter of 2008, and will generate approximately $150 million in net annual synergies and be accretive to Republic's earnings per share in the first year following completion of the merger.
Shares of Republic were at $24.42, in the middle of its 52 week average, and shares of Allied Waste were $10.75, also in the middle of its 52 week average.
John Laub is the Chairman of the Phoenix CEO-CFO Group.
1. "Republic Services and Allied Waste Complete Merger Integration Planning:
Companies Set November 14 as Meeting Date for Stockholder Votes on Proposed Merger And Begin Mailing of Joint Proxy Statement." Joint Company Press Release. Business Wire. October 16, 2008.
2. "Republic Services and Allied Waste to Merge to Form Leading Environmental Services Company with Enterprise Value of over $20 Billion." Joint Company Press Release. Business Wire. June 23, 2008.
3. "Waste Management Drops Bid for Republic, Allied Waste Deal Still in Play." Phoenix Business Journal by South Florida Business Journal. October 13, 2008.
4. "Phoenix-Based Allied Waste & Republic Services Might Merge But..." http://www.phoenixceocfo.com/content/articles/2008-08/phoenix-based-allied.bv
|
Give your Web Site the BannerView.