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8-K - FORM 8-K - WASTE MANAGEMENT INC | h83852e8vk.htm |
EX-99.1 - EX-99.1 - WASTE MANAGEMENT INC | h83852exv99w1.htm |
Exhibit 99.2
FOR IMMEDIATE RELEASE
Waste Management Announces Acquisition of Oakleaf
Strategic move expands companys customer base, service network and its ability to increase
volumes
HOUSTON and HARTFORD, Conn. July 28, 2011 Waste Management, Inc. (NYSE: WM) announced
that today it will close the acquisition of Oakleaf Global Holdings and its primary operations for
$425 million, subject to working capital and other adjustments. The combination will provide
North American customers with unprecedented access to waste and recycling solutions by pairing the
largest network of directly owned hauling, recycling, diversion and disposal assets with the
largest managed third-party network.
In 2010, the acquired operations of Oakleaf generated approximately $580 million in revenues.
Oakleaf has a North American vendor network of 2,500 preferred haulers, and is the North American
leader in outsourced hauling, disposal, waste diversion and recycling services to support
customers waste and recycling solutions. Oakleaf shares WMs strategic focus on sustainability
and technological innovation, and its substantial base of national accounts customers and service
relationships provide a solid growth opportunity for WM.
Acquiring Oakleaf advances our growth and transformation strategies of knowing more about our
customers and how best to serve them, extracting more value from the material that we manage, and
optimizing our operations. We substantially increase our national accounts customer base and
further enhance our ability to provide comprehensive, best-in-class environmental solutions. In
addition, Oakleafs vendor hauler network expands our service footprint to new geographies and
enhances customers one-stop shopping for environmental solutions, said Waste Management CEO and
President David P. Steiner.
Importantly, Oakleafs vendor network expands our partnership with third-party service providers,
Steiner continued. In many cases we can provide Oakleafs vendor haulers with opportunities to
maintain and increase their business by utilizing our extensive post-collection network. This will
generate significant benefits for WM and for the vendor haulers.
Customer demand is reshaping our industry and WM is well positioned to capitalize on the changing
dynamics as we continue to grow, innovate and expand. Oakleaf enhances our positioning. We are
proud of our first-rate services and products that provide environmental solutions to customers,
and we look forward to Oakleafs vendor haulers delivering those services and products to their
customer base. So, we expect this transaction will provide substantial value for our and Oakleafs
customers, the vendor hauler network and our shareholders, Steiner added.
Steve Preston, President and CEO of Oakleaf commented: We are pleased to be joining Waste
Management, the undisputed leader in our industry with one of the most respected brands in the
nation. WM has world-class products and services and we share WMs clear
FOR MORE INFORMATION
Waste Management
Web site
www.wm.com
www.wm.com
Analysts
Ed Egl
713.265.1656
eegl@wm.com
Ed Egl
713.265.1656
eegl@wm.com
Media
Lynn Brown
713.394.5093
lynnbrown@wm.com
Lynn Brown
713.394.5093
lynnbrown@wm.com
vision about the future of our industry. Oakleaf brings a waste hauling, waste diversion and
recycling vendor network along with a shared focus on customers. I am confident that our customers
will benefit from WMs material recovery strategies that provide customers with multiple options.
Our vendor hauler partners will also benefit from the increased array of services that they can
offer to their customers enabling them to grow their businesses further. I look forward to
joining the WM team to ensure a smooth transition.
This acquisition aligns with Waste Managements financial goals of growing earnings, expanding
margins, increasing free cash flow, and increasing returns on invested capital. The company
expects a three to six month integration period. The company anticipates certain costs associated
with the integration and therefore does not expect the transaction to be accretive to earnings
during that time. Subsequent to the transition period, the company expects to generate a minimum
of $80 million in EBITDA on an annualized basis.
As previously announced, Waste Management is holding a conference call this morning to discuss its
financial results for the quarter ended June 30, 2011 beginning at 9:00 a.m. Central Time. On the
call, management may discuss the subject of this press release. The call will be webcast live and
may be heard by accessing the WM website at www.wm.com. The call may also be heard by dialing (877)
710-6139 and entering access code 73675301. A replay of the conference call will be available on
www.wm.com and by telephone from approximately 1:00 PM (Eastern) Thursday, July 28, 2011 through
5:00 PM (Eastern) on Thursday, August 11, 2011. To access the replay telephonically, please dial
800-642-1687, or from outside of the United States or Canada dial 706-645-9291, and use the replay
conference ID number 73675301.
ABOUT WASTE MANAGEMENT
Waste Management, Inc., based in Houston, Texas, is the leading provider of comprehensive
waste management services in North America. Through its subsidiaries, the company provides
collection, transfer, recycling and resource recovery, and disposal services. It is the largest
recycler in North America and a leading developer, operator and owner of waste-to-energy and
landfill gas-to-energy facilities in the United States. The companys customers include
residential, commercial, industrial, and municipal customers throughout North America. To learn
more information about Waste Management visit www.wm.com or www.thinkgreen.com.
ABOUT OAKLEAF
Founded in 1995 and headquartered in Connecticut with 650 employees and a nationwide network
of 2,500 preferred haulers, Oakleaf provides the first-to-market, asset-light business model with
unparalleled technology for some of the largest, most progressive, environmentally minded companies
in North America.
This press release contains forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. Statements relating to future events and performance are
forward-looking statements and include statements regarding closing and funding the transaction
described herein, as well as statements related to results and impacts from the transaction, such
as EBITDA and synergies anticipated integration timeframe, strategic and financial alignment,
internalization of volumes and growth opportunities. You should view these statements with caution.
These statements are not guarantees of future performance, circumstances or events. They are based
on information known to us as of the date the statements are made. All phases of our business are
subject to uncertainties, risks and other influences, many of which we do not control. Specifically
with respect to the transaction described herein, we face risks that we may be unable to achieve
the synergies and savings anticipated, we may be unable to promptly and effectively integrate the
merged business, and the transaction may result in unanticipated diversion of management time and
company resources. Any of these and other factors, either alone or taken together, could have a
material adverse effect on us and could cause actual results to be materially different from those
set forth in such forward-looking statement. We 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. Additional information regarding factors that could
materially affect results and the accuracy of the forward-looking statements contained herein may
be found in Part I, Item 1A of the Companys most recent Annual Report on Form 10-K.
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