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Saul Loeb | AFP | Getty Images
Workers sort out recycling materials at the Waste Management Materials Recovery Facility in Elkridge, Maryland, June 28, 2018.
Waste Management announced Monday that it would buy about $ 3 billion worth of scrapping services, its smallest competitor, Advanced Disposal Services.
The offer of $ 33.15 represents a premium of about 22% over Advanced Disposal's closing price of $ 27.14 Friday and would be Waste Management's largest acquisition for over nine years.
The acquisition is expected to generate more than $ 100 million in savings and capital expenditures each year after closing, which is expected in the first quarter of 2020.
Based in Houston, Waste Management provides environmental waste management services and owns or operates 247 solid waste landfills and five hazardous waste landfills in December 2018.
Advanced Disposal, based in Ponte Vedra, Florida, is the fourth largest solid waste company in the United States, providing non-hazardous solid waste collection, transfer, recycling, and disposal services in 16 states and the Bahamas .
Advanced Disposal had a net debt of about $ 1.9 billion, Waste Management said.
The Wall Street Journal was the first to report that the companies were in talks.
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