ADVANCED DISPOSAL SERVICES, INC. (NYSE:ADSW)
Historical Stock Chart
1 Month : From Mar 2019 to Apr 2019
By Lauren Silva Laughlin
The garbage big boys are bulking up. On Monday, the largest U.S. trash collector, Waste Management, picked off the fourth-heftiest in the sector, Advanced Disposal Services, in a $2.9 billion deal. Recent consolidation leaves only small players to scoop up.
Nearly a fifth of the industry is made up of private companies with annual revenue of less than $100 million, according to Oppenheimer. Acquisition sizes are tiny -- for Waste Management, smaller deals in existing markets run about $3 million. An industry roll-up in the past decade left 4,000 private operators.
Pressure to consolidate remains intense. China recently reduced the buying of recycled cardboard, which sent prices plummeting. As a result, companies such as Waste Management have been forced to look at how municipalities pay for services, among other things.
Going into a new town with some muscle can't hurt. With recent tax changes keeping valuations afloat, Waste Management's trash binge probably won't stop.
Write to Lauren Silva Laughlin at firstname.lastname@example.org
(END) Dow Jones Newswires
April 15, 2019 13:00 ET (17:00 GMT)
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