Waste Management Inc. is nearing a roughly $2.9 billion deal to buy its smaller rival Advanced Disposal Services Inc., according to people familiar with the matter, in what would be the biggest acquisition in its history.
Waste Management WM, +1.21% would pay $33.15 a share in cash for Advanced Disposal ADSW, +1.16% , the people said. The deal, which could be announced Monday, represents a 22.1% premium to Advanced Disposal’s trading price at Friday’s close and will rank as one of the biggest solid-waste company acquisitions in more than a decade. Including debt, the deal would be worth nearly $5 billion.
A deal would bring together the no. 1 and no. 4 companies in the sector.
Advanced Disposal, based in Ponte Vedra, Fla., is a waste and recycling collector serving roughly 2.8 million residential customers and 200,000 commercial customers in around 16 states and the Bahamas. It also owns or operates around 60 landfills and recycling centers. Houston-based Waste Management is the largest solid-waste company in the U.S., with a market value of more than $40 billion. It owns or operates roughly 250 landfills, the largest network in the country.
An expanded version of this report appears on WSJ.com.
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