Republic Services Sells Some Assets

Republic Services announced on Feb. 9 it has entered into an agreement to divest certain assets to Waste Connections, Inc., based in California, following Republic Services' Dec. 5, 2008 merger with Allied Waste Industries, Inc.

The assets include six municipal solid waste landfills, six collection operations, and three transfer stations across seven markets: Southern California; Denver, Colo.; Houston, Texas; Lubbock, Texas; Greenville/Spartanburg, S.C.; Charlotte, N.C.; and Flint, Mich. Combined revenue of the assets being sold is approximately $110 million.

"We are pleased with this transaction," said James E. O'Connor, chair and chief executive officer of Republic Services, Inc. "We are on track to complete the divestiture process on a timely basis. All proceeds from the sale of divested assets will be used for debt reduction."

The sale of these assets is in accordance with Republic's agreement with the U.S. Department of Justice to divest certain assets following completion of the merger with Allied Waste Industries. Republic is in discussions with potential buyers of other assets required to be divested to fulfill its agreement with the U.S. Department of Justice to divest certain assets.

The transaction with Waste Connections remains subject to closing conditions regarding due diligence, regulatory approval, and other customary matters. Closing is expected to occur in the second quarter of 2009.