Republic and Allied Stockholders OK Merger
Republic Services, Inc. and Allied Waste Industries, Inc. on Nov. 14 announced that their respective stockholders have approved the proposed merger of Republic and Allied at separate special meetings held in Fort Lauderdale, Fla. and Scottsdale, Ariz.
Preliminary results indicate that more than 95 percent of shares voted at each meeting -- or more than 80 percent of total shares outstanding at each company -- were cast in favor of the respective proposals related to the merger. The companies expect to complete the merger by the end of the year, subject to the receipt of antitrust regulatory approval from the U.S. Department of Justice.
"We are pleased by the overwhelming support of this historic transaction from stockholders of both companies," said Jim O'Connor, chair and chief executive officer of Republic Services. "We are positioned for greater success together as a strong leader in the U.S. environmental services industry. This merger will bring together our complementary cultures and our shared commitment for superior customer service, while creating compelling strategic and financial benefits for our stockholders."
"Our integration teams have spent the past two months analyzing the critical functions and processes of both companies to identify the actions needed for a seamless integration beginning Day One and for capturing the synergies inherent in this combination," said Don Slager, president and chief operating officer of Allied. "With today's stockholder approval, we are one step closer to realizing the value of this transaction for employees, customers and investors."
Upon completion of the merger, the combined company, which will be called Republic Services, will be a leading national environmental services provider, with expected pro forma revenues of $9 billion. Following the completion of the merger, Allied will be a wholly owned subsidiary of Republic with Allied stockholders receiving approximately 51.7 percent of the outstanding common stock of the combined company in respect of their Allied shares and Republic stockholders retaining approximately 48.3 percent of the outstanding common stock of the combined company, in each case, on a diluted basis. The companies are highly confident that they will meet the projected $150 million of annual pre-tax merger synergies by the third year following completion of the transaction.