Waste Connections Buying R360 Environmental Solutions for $1.3 Billion
Both are headquartered in Texas. R360 is a leading provider of non-hazardous oilfield waste treatment, recovery, and disposal services.
Waste Connections, Inc. of The Woodlands, Texas, announced Sept. 17 it has agreed to acquire the business and operating subsidiaries of Houston-based R360 Environmental Solutions, Inc. for approximately $1.3 billion in cash. Pending regulatory approvals, the deal is expected to close in the fourth quarter of 2012.
R360 Environmental Solutions provides non-hazardous oilfield waste treatment, recovery, and disposal services in key energy regions of the United States, including the Permian, Bakken, and Eagle Ford Basins, operating 26 facilities in Louisiana, New Mexico, North Dakota, Oklahoma, Texas, and Wyoming, according to Waste Connections’ announcement. Waste Connections is an integrated solid waste services company that provides collection, transfer, disposal, and recycling services to more than 2 million customers in mostly exclusive and secondary markets in 30 states.
"We are extremely pleased about the opportunity to bring R360 into the Waste Connections family. Through acquisitions and new facility development, R360 has created leading positions in key basins, providing closed-loop oilfield waste services within an increasingly stringent regulatory environment. This acquisition represents a natural extension of our existing E&P disposal activities," said Ronald J. Mittelstaedt, chairman and CEO of Waste Connections. "While a tepid economy has impacted MSW volumes, increased drilling activity in unconventional areas is fueling impressive organic growth within the E&P waste sector. R360 is actively permitting several new sites to further expand its operations in this growing industry."
"For R360, this is a terrific opportunity that should enable us to grow more rapidly," said Troy W. Thacker, CEO of R360 Environmental Solutions. "By combining our business and expertise with the scale, breadth, and financial resources of Waste Connections, we will be able to enhance the environmental solutions we bring to our customers. Both companies value safety and protecting the environment, as well as excellence and integrity in business practices. We believe that Waste Connections will be a great home for R360 and our team."
The announcement said R360 Environmental Solutions has annualized revenue of about $300 million. Waste Connections reported $787.2 million in revenue and $146.8 million in operating income for the first half of 2012.