Waste Management (WM, $104.46) to buy Advanced Disposal Services (ADSW, $32.28) for $4.9 billion
Waste Management is set to buy rival Advanced Disposal Services.
The deal, worth $4.9 billion including debt, will have the waste management & environment services company paying $33.15 a share in cash for Advanced Disposal. According to the Wall Street Journal (WSJ), the acquisition is Waste Management's biggest till date.
Business Wire reports that more than $100 Million of projected annual cost and capital expenditure synergies are expected to in a post-Synergy transaction multiple well below Waste Management's current trading multiple.
Advanced Disposal is partly owned by the Canada Pension Plan Investment Board, which has agreed to vote for the deal, according to WSJ. Advanced Disposal caters to around 2.8 million residential customers and 200,000 commercial customers.
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Notable companies
The most notable companies in this group are Enviri Corp (NYSE:NVRI).
Industry description
Environmental Services includes companies that collect and dispose of hazardous and non-hazardous waste. Their services include removal of toxic waste from soil, removing medical waste etc. Some companies also operate incinerators, sewerage systems, waste treatment plants, and landfills. Demand for waste management is likely to rise with increasing urbanization/industrialization. Waste Management, Inc., Republic Services, Inc., Waste Connections, Inc. and Tetra Tech, Inc. are some of the major companies in this business.
Market Cap
The average market capitalization across the Environmental Services Industry is 6.08B. The market cap for tickers in the group ranges from 14.5K to 85.6B. WM holds the highest valuation in this group at 85.6B. The lowest valued company is GLYE at 14.5K.
High and low price notable news
The average weekly price growth across all stocks in the Environmental Services Industry was -0%. For the same Industry, the average monthly price growth was 6%, and the average quarterly price growth was 1%. CWSFF experienced the highest price growth at 28%, while DGWR experienced the biggest fall at -25%.
Volume
The average weekly volume growth across all stocks in the Environmental Services Industry was 59%. For the same stocks of the Industry, the average monthly volume growth was 39% and the average quarterly volume growth was 113%
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Valuation Rating: 62
P/E Growth Rating: 63
Price Growth Rating: 58
SMR Rating: 83
Profit Risk Rating: 75
Seasonality Score: 16 (-100 ... +100)