Waste Connections to acquire Secure Energy waste disposal-centric divestitures

Waste Connections (WCN) announced that its subsidiary, Waste Connections of Canada, has entered into an agreement with Secure Energy Services (SECYF) to acquire a portfolio of 30 energy waste treatment and disposal facilities in Western Canada for an aggregate purchase price of CAD $1.075B plus certain adjustments as provided in the definitive purchase agreement. The assets to be acquired by the Company include 18 treatment, recovery and disposal facilities; six landfills; four saltwater disposal injection wells; and two disposal caverns and represent all of the required divestitures as mandated by the Canadian Competition Tribunal following Secure’s 2021 merger with Tervita Corporation. The combined annual revenue being acquired by the Company is currently estimated at approximately CAD$300 million. The transaction remains subject to customary closing conditions, including receipt of Canadian Competition Bureau approval, and it is expected to close during the first quarter of 2024. “This acquisition represents a unique opportunity for outsized value creation from the expansion of our presence in Canada through a network of E&P waste treatment and disposal assets located in the most attractive and growing basins,” said Ronald J. Mittelstaedt, President and Chief Executive Officer. “The divestitures are a rare combination of high-quality, well-situated disposal and treatment assets with significant internal capacity for growth. With a heavy orientation towards serving customers engaged in energy production activity, these assets will be complementary to our U.S. R360 Environmental Solutions operations.”