Dive Brief:
- Waste Connections Inc. has bought select non-core hauling assets from Texas-based Red River Waste Solutions (RR Waste) in Rapid City, SD.
- Specific terms of the deal were not reported. Cleveland investment banking firm Brown Gibbons Lang and Co. was RR Waste's financial advisor during the process.
- The company's Rapid City operation includes solid waste collection, recycling and disposal services for residential and commercial customers.
Dive Insight:
The deal does not involve RR Waste's ongoing operations in other states.
This combines the two largest companies in South Dakota's waste management market and further expands Waste Connections' growing portfolio. The company's stock went up after the news and has risen by more than 30% since last October.
Waste Connections is now the third-largest service provider in North America after completing its merger with Progressive Waste Solutions last week. The deal was the biggest in the waste world this year so far and marks a major step in the continuing consolidation of the industry. The newly merged company has a pro-forma revenue of $4.1 billion.
