HOUSTON & KANSAS CITY, Kan.--(BUSINESS WIRE)--Oct. 6, 2014--
Waste Management, Inc. (NYSE:WM) and aPriori Capital Partners L.P. today
announced the signing of a definitive agreement under which a subsidiary
of Waste Management will acquire the outstanding stock of Deffenbaugh
Disposal, Inc. (“Deffenbaugh”).
“This proposed acquisition aligns perfectly with our goal of driving
shareholder value by maximizing our focus on our core business,” said
David P. Steiner, President and Chief Executive Officer of Waste
Management. “It affords us the opportunity to expand our service
offerings to residential, commercial, and industrial customers in
Kansas, Missouri, Nebraska and Arkansas and enter an attractive market –
Kansas City – where we currently have very limited presence. It also
allows us to replace a portion of the earnings and cash flow from our
pending divestiture of Wheelabrator Technologies, Inc. at an attractive
price, while preserving our strong balance sheet.”
“Deffenbaugh’s management team runs a terrific business and the
company’s employees operate it superbly. I am confident that the
addition of Deffenbaugh to our operations will create years of
shareholder value, additional benefits for customers in the region and
opportunities for the employees of both companies to learn and grow from
each other’s operational, customer service and community involvement
expertise,” continued Steiner.
“This is an exciting day for Deffenbaugh,” said Jim Donahue, President
and Chief Executive Officer, Deffenbaugh. “Today’s announcement is a
testament to our strong business operation, deep community engagement
and the hard work of our employees. I speak for all of us at Deffenbaugh
when I say we are excited to be joining forces with Waste Management,
the largest and most respected name in the industry.”
“Over the past five years, Deffenbaugh has modernized its fleet,
improved operations efficiency and expanded its footprint. We are proud
to have partnered with the team to build a world-class business,” said
Susan Schnabel, Board Member and Co-Managing Partner at aPriori Capital.
With approximately 1,000 employees, Deffenbaugh provides services in the
cities of Omaha, NE, St. Joseph, MO, Kansas City metropolitan area and
Topeka, KS, as well as in Northwest Arkansas. In addition to these
hauling operations, the company operates one municipal solid waste
landfill, one construction and demolition landfill, two material
recovery facilities, and seven transfer stations. In 2013, Deffenbaugh
collected more than 1.7 million tons of waste and recyclable material
with the majority processed at its recycling facilities or disposed at
its landfills.
“Jim Donahue and the Deffenbaugh Industries team have been a strong and
important presence in our entire Midwest region,” said Mark Holland,
Mayor/CEO of The Unified Government of Wyandotte County/Kansas City, KS.
“They adhere to highest standards of corporate leadership and community
involvement. We look forward to Deffenbaugh’s continued engagement in
our community.”
The transaction, which is subject to expiration or termination of the
waiting period under the Hart-Scott-Rodino Act as well as other
customary closing conditions, is anticipated to close in the next
several months.
Stifel is serving as exclusive financial advisor to Deffenbaugh in
connection with its acquisition by Waste Management.
ABOUT WASTE MANAGEMENT
Waste Management, based in Houston, Texas, is the leading provider of
comprehensive waste management services in North America. Our
subsidiaries provide collection, transfer, recycling and resource
recovery, and disposal services. We are the largest residential recycler
and also a leading developer, operator and owner of waste-to-energy and
landfill-gas-to-energy facilities in the United States. Our customers
include residential, commercial, industrial and municipal customers
throughout North America. To learn more visit www.wm.com.
ABOUT DEFFENBAUGH INDUSTRIES
Deffenbaugh, headquartered in Kansas City, Kansas is one of the largest
privately owned refuse firms in the Midwest. Deffenbaugh and its
affiliates operate from locations in Kansas, Missouri, Arkansas and
Nebraska. Company and affiliate services include commercial, industrial
and residential waste disposal and recycling, construction waste
services and portable toilet services. Deffenbaugh’s Johnson County
Landfill, located in Shawnee, Kansas, is situated on nearly 1,000 acres
and is the largest, safest, Subtitle D landfill in the Midwest. To learn
more visit http://www.deffenbaughinc.com.
ABOUT aPRIORI CAPITAL
aPriori Capital Partners (“aPriori”) is a leveraged buyout fund advisor
created through the spin-off of DLJ Merchant Banking Partners (“DLJ
MBP”) from Credit Suisse in 2014. The firm is focused on mid-market
opportunities in the US and in Europe. As of December 31, 2013, the
funds collectively managed approximately $2 billion of value across 22
portfolio companies. DLJMBP’s history as one of the most active and
successful private equity investors in North American and Europe was
built upon leading leveraged buyout and related transactions in the
middle market. aPriori is headed by Colin Taylor and Susan Schnabel and
operates from offices in New York, Los Angeles and London. aPriori’s
principals bring decades of experience to our multi-sector investment
strategy which emphasizes businesses in the retail and consumer,
business services, healthcare, and energy sectors. To learn more visit www.aprioricapital.com.
This press release contains forward-looking statements, including
statements regarding the timing and completion of the acquisition of
Deffenbaugh, Waste Management’s future operation of the Deffenbaugh
business, generation of earnings and cash flow and shareholder value,
divestiture of the Wheelabrator business, the strength of Waste
Management’s future balance sheet, expanded service offerings and
service areas and other results from the acquisition. You should view
these statements with caution. They are based on the facts and
circumstances known to the parties as of the date the statements are
made. These forward-looking statements are subject to risks and
uncertainties that could cause actual results to be materially different
from those set forth in such forward-looking statements, including but
not limited to, changes in timing and expectations with respect to
closing and obtaining necessary approvals and consents, including
potential impediments that may arise in connection with
Hart-Scott-Rodino antitrust review, fulfillment of other conditions,
economic conditions, difficulties integrating the acquired operations,
failure to achieve anticipated synergies and overall business and
capital allocation strategy. Please also see Waste Management’s filings
with the SEC, including Part I, Item 1A of Waste Management’s most
recently filed Annual Report on Form 10-K, for additional information
regarding these and other risks and uncertainties applicable to its
business. The parties assume no obligation to update any forward-looking
statement, including financial estimates and forecasts, whether as a
result of future events, circumstances or developments or otherwise.
Source: Waste Management, Inc.
Waste Management
Investor Relations
Ed Egl,
713.265.1656
eegl@wm.com
or
National
Media
Toni Beck, 713.394.5093
tbeck3@wm.com
or
Local
Media, Trades
Lisa Disbrow, 317.508.5113
ldisbrow@wm.com
or
aPriori
Capital Partners
Susan Schnabel, 424.276.4484
SSchnabel@aprioricapital.com
or
Deffenbaugh
Industries
Alex Wendel, 816.489.2458
Alex.Wendel@Global-Prairie.com
