Republic Services, Allied Waste Complete Integration Planning
Republic Services, Inc. and Allied Waste Industries, Inc. announced that they have substantially completed extensive integration planning related to their merger to ensure a seamless combination for employees, shareholders, and customers.
The companies are poised to implement their plans to complete the merger in the fourth quarter of 2008. The companies are highly confident that they will meet the projected $150 million of merger synergies in the third year following completion of the transaction.
"As we move through the planning process and get closer to the completion of this merger, we are very confident that we will be able to achieve value for our shareholders by building on both companies' foundations of profitable growth," said Jim O'Connor, chair and chief executive officer of Republic Services. "Our strategic focus remains on realizing merger savings, improving return on invested capital, reducing debt, and generating higher levels of free cash flow as we work toward positioning the new Republic to provide better opportunities for employees, significant operating efficiencies, unmatched customer service, and long-term shareholder value."
Republic Services and Allied Waste began the integration planning process immediately after the announcement of their definitive merger agreement by forming 17 functional and cross-functional teams of corporate, regional, and local representatives from both companies. Over the past three months, these teams have invested more than 12,000 man-hours in planning for the smooth and successful merger of Republic and Allied. A large part of the planning process included the review and selection of the operating systems that will be used by the combined company. Additionally, the companies have named the top 70 executives and managers of the combined company.
"Our integration teams have worked hard to complete the integration planning process to prepare our joint leadership team to enhance Republic's position in the U.S. environmental services industry," said Don Slager, president and chief operating officer of Allied. "The bottom line is that we are certain that we have the right people and the right plan to execute a smooth transition that creates value for our shareholders and enhanced career opportunities for our employees. With the 'day-one' merger plans in place, our integration teams are now focusing on developing the plans for the first few months of the merger to ensure a smooth transition and integration."
The companies also announced that the U.S. Securities and Exchange Commission has declared effective the Registration Statement on Form S-4 relating to the proposed merger of Republic Services and Allied Waste. Both companies have established Nov. 14 as the date of their special stockholder meetings, and they have begun to mail a definitive joint proxy statement to stockholders of record as of the Oct. 6, 2008 record date for the meetings.