Waste Connections, a Canadian solid waste services company, has announced plans to acquire 30 energy waste treatment and disposal facilities in Western Canada. The deal, valued at 1.08 billion Canadian dollars ($795 million) in cash, will see Waste Connections take ownership of a range of assets including treatment, recovery, and disposal facilities, landfills, saltwater disposal injection wells, and disposal caverns.
This acquisition comes as part of the divestitures required by the Canadian Competition Tribunal following the merger of Secure Energy Services and Tervita, an environmental and energy services company. Secure Energy Services is obligated to sell these facilities as a result of the merger.
The waste treatment and disposal facilities are strategically located in Canada’s prominent oil and gas basins, serving a diverse customer base primarily focused on energy production. With an estimated combined annual revenue of around C$300 million, these facilities are a valuable addition to Waste Connections’ portfolio.
In addition to the sale price, there will be approximately C$75 million in adjustments associated with the agreement. The transaction is expected to be completed in the first quarter of next year.
