Waste Connections Inc. has entered into agreements to acquire the operations of the largest privately owned solid waste services company in Alaska.
Waste Connections (NYSE: WCN) is acquiring the operations of Alaska Pacific Environmental Services Anchorage LLC and Alaska Green Waste Solutions LLC. Known together as Alaska Waste, the company has annual revenue of $ 65 million. The transaction is subject to closing conditions, including regulatory approval.
The deal is expected to close in first-quarter 2012.
Folsom-based Waste Connections did not disclose terms of the deal, but research analysts suggest it is worth more than $ 100 million.
Wunderlich Securities said in a company update that Waste Connections is paying between $ 120 million and $ 125 million for Alaska Waste. Wunderlich maintains a buy rating and price target of $ 38 on shares of the company.
Raymond James & Associates estimated the purchase price of Alaska Waste to be “north of $ 100 million.” In a summary about the acquisition, Raymond James said “what intrigues us most about the purchase is it will add further visibility to 2012 earnings growth… .”
The transaction, analysts wrote in the summary, “would also add nicely to free cash flow.”
Shares of Waste Connections rose 4.4 percent, or $ 1.45, to $ 34.11 in after hours trading Wednesday.
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