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BFI ANNOUNCES DEFINITIVE AGREEMENT TO ACQUIRE A 50 PERCENT INTEREST IN OTTO WASTE SERVICES OF GERMANY

 HOUSTON, Sept. 30 /PRNewswire/ -- Browning-Ferris Industries, Inc. (NYSE: BFI) and Otto Holding International B.V. (Otto Holding) jointly announce that they have entered into a definitive agreement for the acquisition by BFI from Otto Holding of 50 percent of its interest in Otto Entsorgungsdienstleistung GmbH (Otto Waste Services), a company engaged in the solid waste services business in Germany.
 The agreement, which is subject to anti-trust review in the United States and Germany, calls for BFI to purchase from Otto Holding 50 percent of Otto Waste Services' share capital for a purchase price of approximately U.S. $375 million, payable 25 percent in BFI common stock and 75 percent in Deutsche Mark.
 Founded in 1967, Otto Waste Services is a fully integrated waste services company operating in 136 locations throughout Germany with 4,200 employees. It has a fleet of 2,200 vehicles, 19 sorting plants, 13 transfer stations and 8 composting plants, and it operates 32 landfills under various municipal contracts. A large portion of its revenues is derived from long-term contracts servicing approximately 8 million people. The total consolidated annualized 1993 revenues of Otto Waste Services and its subsidiaries are estimated to be approximately U.S. $500 million. In addition, the total annualized 1993 revenues of Otto Waste Services' unconsolidated affiliates, in which BFI will have an interest, are estimated to be approximately U.S. $65 million.
 BFI will include Otto Waste Services and its subsidiaries in BFI's consolidated financial statements, which is expected to increase BFI's indebtedness (including capitalized lease obligations) by approximately U.S. $300 million, of which BFI's proportionate share will be approximately U.S. $150 million. BFI expects the transaction to increase its earnings per share.
 William D. Ruckelshaus, BFI's chairman and CEO, said, "BFI views the acquisition as a strategically significant addition to its international waste services business. Next to the United States, Germany represents the largest market available to the global waste services industry in the world today. This acquisition will enable BFI to participate in the rapid growth, consolidation and restructuring of the market with a national industry leader. In addition, this alliance combines the strong management and unique national franchise of Otto Waste Services with BFI's operating and technical expertise and access to the global capital markets."
 Ulrich Otto, president of Otto Holding said, "This involvement with BFI and our ownership of BFI shares gives Otto Holding the opportunity to participate on a worldwide basis in the waste services industry." Otto is expected to become a member of BFI's board of directors.
 Browning-Ferris Industries, Inc. is one of the largest publicly-held companies engaged in providing waste services. Subsidiaries and affiliates collect, transport, treat and dispose of commercial, residential and municipal solid waste and industrial wastes. BFI subsidiaries are also involved in recycling, resource recovery facilities and medical waste services. BFI's operations outside of North America are located in Australia, Finland, Hong Kong, Italy, New Zealand, Spain, the Netherlands and the United Kingdom.
 -0- 9/30/93
 /CONTACT: Sandra D. Glatzau, analysts, 713-870-7161 or Peter G. Block, media, 713-870-7854, both of BFI/


CO: Browning-Ferris Industries Inc.; Otto Holding International B.V. ST: Texas IN: ENV SU: TNM

WB -- NY114 -- 7528 09/30/93 17:36 EDT
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Publication:PR Newswire
Date:Sep 30, 1993
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