Date: August 6, 2007
Source: Allied Waste Industries, Inc.
Allied Waste Industries, Inc. Agrees to Sell Certain Assets to Veolia ES Solid Waste, Inc.
Allied Waste Industries, Inc. (NYSE: AW), a leading waste services company, today announced that it has reached a definitive agreement with Veolia ES Solid Waste, Inc. to sell to Veolia certain solid waste landfill and collection assets in the east-central and southeastern United States for $86 million. The assets include collection and disposal operations near Elkhart, Indiana, in southern Illinois, eastern Kentucky and south-central Georgia. These operations, which total 6 hauling companies, 2 transfer stations and 5 landfills, are expected to generate approximately $54 million in revenue in 2007.
Upon completion of the transaction, which is anticipated to occur during the third quarter, Allied Waste expects to record a non-cash charge primarily related to goodwill. The transaction is subject to receipt of certain government approvals and other customary closing conditions. "Following a comprehensive review of Allied Waste's operations, we have been working to align our investments to better support Allied's long-term strategic objectives," said Donald Slager, President and Chief Operating Officer. "We see opportunities to more effectively invest this capital in support of our goals of driving profitable growth and increased returns on our investments and to our shareholders."
About Allied Waste Industries, Inc.
Allied Waste is America's second largest non-hazardous solid waste services company and an environmental leader. Headquartered in Phoenix, AZ, Allied Waste provides waste collection, transfer, recycling and disposal services to millions of residential, commercial and industrial customers in over 100 major markets spanning 37 states and Puerto Rico. Our team of 24,000 dedicated employees operates within a highly efficient, integrated organization that generated $6 billion of revenue in 2006.
Veolia ES Solid Waste, Inc. Agrees to Acquire Certain Assets of Allied Waste Industries, Inc.
Veolia ES Solid Waste, Inc. today announced the signature of an agreement with Allied Waste Industries to acquire certain of Allied's integrated solid waste landfill and collection assets in the east-central and southeastern United States. The assets include a collection company and landfill near Claypool, Indiana; collection operations and two landfills in eastern Kentucky; a solid waste collection company and landfill in Wayne County, Illinois; and four solid waste collection companies, two transfer stations and a landfill in west-central Georgia. These operations are expected to generate approximately $54 million in revenue in 2007. Completion of the acquisition is subject to final regulatory approvals and other customary closing conditions.
"These operations will provide Veolia with four new, vertically integrated service platforms that will further expand the company's presence in southern Illinois, and establish our presence in northern Indiana, eastern Kentucky and west-central Georgia. The five landfills contain an aggregate of nearly 70 million cubic yards of permitted landfill airspace," said Richard Burke, President and COO of Veolia ES Solid Waste, Inc.
Mr. Burke added that this acquisition "further advances Veolia's commitment to the active pursuit of acquisitions that expand our vertically integrated solid waste operations throughout North America, thereby enabling us to extend the Veolia Environmental Services brand of exceptional solid waste services across an increasing customer base."
About Veolia ES Solid Waste, Inc.
Veolia ES Solid Waste, Inc., part of Veolia Environmental Services North America Corp., is one of the largest solid waste companies in North America. The company provides a full range of services including collection, transportation, disposal and recycling to more than 1.7 million residential, commercial and industrial customers in 11 states, the Bahamas and Canada. It services municipalities through the operation of 61 collection facilities and 24 solid waste sanitary landfill facilities in the United States. Veolia ES Solid Waste, Inc. is a member of the National Solid Wastes Management Association.
About Veolia Environmental Services North America Corp.
Veolia Environmental Services North America Corp., headquartered in Lombard, IL, offers fully integrated environmental solutions to virtually all industrial, commercial, municipal and residential sectors. It is part of the Veolia Environmental Services (VES) group, the only global manager of liquid, solid, non-hazardous and hazardous waste; on-site waste processing, industrial cleaning and process maintenance; and recycling, recovery and disposal for both the public and private sectors. VES has over 80,000 employees in 33 countries and posted revenues of $9.8 billion in 2006. Veolia Environnement (NYSE:VE), the parent of VES, with operations in water, waste, energy and transportation management, has more than 300,000 employees in 64 countries and recorded revenues of $37.7 billion in 2006. For more information, please visit www.VeoliaES.com.
For more information, contact:
Veolia ES Solid Waste, Inc., Milwaukee
Jeff Meredith, 770-565-1983
Veolia Environmental Services North America
Denisse Ike, 630-218-1751
Denise Graham, 904-354-2600