ALLIED WASTE INDUSTRIES ANNOUNCES ACQUISITIONS OF SOLID WASTE COMPANIES IN TRANSACTIONS REPRESENTING APPROXIMATELY $24.4 MILLION IN ANNUAL REVENUE.SCOTTSDALE Scottsdale, city (1990 pop. 130,069), Maricopa co., central Ariz.; settled in 1895 by Winfield Scott, inc. 1951. It is a resort and retirement center in the Phoenix metropolitan area. , ARIZONA--(BUSINESS WIRE)--SEPTEMBER 21, 1995 -- Allied Waste Industries, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AWIN AWIN Aviation Week Intelligence Network (magazine website) ) today announced the acquisition of four privately held solid waste companies for approximately 3.7 million shares of Allied common stock in transactions that will be accounted for as poolings-of-interest. Allied said the acquisition of the four companies would be accretive to earnings and would allow the Company to internalize internalize To send a customer order from a brokerage firm to the firm's own specialist or market maker. Internalizing an order allows a broker to share in the profit (spread between the bid and ask) of executing the order. a total of approximately 900,000 "gate yards" of additional annual waste flow into existing Allied landfills. The four companies, comprising four collection operations, two transfer stations and one recycling recycling, the process of recovering and reusing waste products—from household use, manufacturing, agriculture, and business—and thereby reducing their burden on the environment. facility, represent annual revenues of approximately $18.7 million. Separately, the Company announced today that it had signed letters of intent to acquire two other privately held solid waste companies, for a total of approximately 1,000,000 shares of Allied stock. Allied said that on a combined basis, these two new operations -- encompassing one collection, one recycling and one landfill operation in central Illinois Central Illinois is a region of the U.S. state of Illinois that consists of the entire central section of the state, divided in thirds from north to south. It is an area of mostly flat prairie. -- represent annual revenues of approximately $5.7 million. Allied noted that the landfill receives approximately 950,000 gate yards of waste per year and would provide the Company with approximately 50 million gate yards of additional disposal capacity. The Company indicated that it expects to reach definitive agreements with the two companies in the near future, but said that there can be no assurance that the two transactions, under letters of intent, will be consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. . Allied currently has 26.8 million shares outstanding. Upon completion of these planned transactions, Allied will have approximately 31.3 million shares outstanding. Roger A. Ramsey, Chairman and Chief Executive Officer of Allied Waste, said, "These transactions reflect the continued implementation of our strategy of acquiring 'tuck-in,' or complementary, collection, transfer and landfill operations that are expected to be accretive to earnings. These new operations will enhance the vertical integration of services in our existing markets by allowing the Company to internalize additional annual waste flow into Allied landfills. The acquisition of the tuck-in collection operations will provide additional earnings leverage from Allied's substantial landfill asset base, while the landfill and one of the collection operations represents a fully integrated operation. "Good acquisition opportunities continue to be available," continued Mr. Ramsey. "We expect to pursue those that offer growth in both earnings and operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. ." One of the acquired companies, Best Disposal, Inc., the largest independent waste collection company in Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). , is anticipated to contribute significantly to Allied's growing presence in the Phoenix market, the largest metropolitan area in the third fastest growing state in the U.S. Said Tom Van Weelden, President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of Allied Waste, "Best Disposal will fit extremely well with our existing operations, allowing us to provide commercial and residential collection services throughout the Phoenix area. Best will also generate approximately 570,000 gate yards per year of annual waste flow to our recently permitted Southwest Regional Landfill (Buckeye buckeye: see horse chestnut. buckeye Any of about 13 trees and shrubs of the genus Aesculus (family Hippocastanaceae), native to North America, southeastern Europe, and eastern Asia. ) and our Apache Apache (əpăch`ē), Native North Americans of the Southwest composed of six culturally related groups. They speak a language that has various dialects and belongs to the Athabascan branch of the Nadene linguistic stock (see Native American Junction Landfill operations. "In the Chicago area as the result of these acquisitions," continued Mr. Weelden, "Allied will have three collection operations, one transfer operation and one recycling operation that may be tucked into the Company's existing operations in the area, allowing for the internalization Internalization A decision by a brokerage to fill an order with the firm's own inventory of stock. Notes: When a brokerage receives an order they have numerous choices as to how it should be filled. of approximately 328,000 gate yards of waste per year at Allied disposal facilities." Allied Waste Industries, Inc., headquartered in Scottsdale, Arizona Scottsdale (O'odham Vaṣai S-vaṣonĭ) is a city in Maricopa County, Arizona, United States, adjacent to Phoenix. Scottsdale has become internationally recognized as a premier and posh tourist destination, while maintaining its own identity and culture as " , is a rapidly growing non-hazardous solid waste management company providing waste collection, recycling and disposal services in selected regional markets in 10 states. -0-
ALLIED ACQUISITION SUMMARY SINCE JANUARY 1, 1995:
ESTIMATED ANNUAL REVENUE AND LANDFILL VOLUME (in millions)
Total
Estimated Annual Revenue $32.1
Permitted Landfill Capacity - gate yards (approximate) 88.0
Waste volume from tuck-ins - gate yards per year (approximate) 1.1
Operations Acquired
Collection Transfer
Market Landfills Operations Stations Other(a) Total
Arizona 1 1 1(1) 1 4
Atlanta 2 2 Colorado 1(2) 3 1 5 Indiana 2 2 Missouri 1 1 Chicago 3 1 1(3) 5 Illinois (Central) 1(4) 1(4) 2 Total 3 13 3 2 21 -0-
(1) Permitted and unopened transfer site.
(2) Colorado landfill is under long-term operating contracts.
(3) Permitted and unopened Material Recovery Facility site.
(4) Under letter of intent
(a) Other: Material Recovery Facilities, Portable Services, etc.
CONTACT: Allied Waste Industries, Inc. Peter S. Hathaway 602/423-2946 |
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