(RTTNews) - Republic Services, Inc. (RSG) and US Ecology, Inc. (ECOL) have entered into an agreement under which Republic Services will acquire all outstanding shares of US Ecology for $48 per share in cash, representing a total value of approximately $2.2 billion including net debt of approximately $0.7 billion. US Ecology is a provider of environmental solutions offering treatment, recycling and disposal of hazardous, non-hazardous and specialty waste.
Jon Vander Ark, CEO of Republic Services, said: "This strategic acquisition expands our geographic footprint across the U.S. and Canada and provides vertical integration capabilities for our environmental solutions business."
Republic expects approximately $40 million in cost synergies within three years following the acquisition, expected to result in double-digit returns. The combined company adjusted free cash flow conversion is expected to be at least 47 percent by 2024. The company expects transaction to be immediately accretive to adjusted earnings.
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