Three weeks into the new year, the industry awoke to big news: The solid waste industry's No. 3 and No. 4 haulers, Waste Connections and Progressive Waste Solutions, had struck a deal to merge to form a company with more than $4 billion in annual revenue.
From the start, it was clear that the deal would be no marriage of equals. Several Progressive executives left shortly after the deal was announced. Under the terms of the agreement, the bulk of the company's board and executive team would be comprised of Waste Connections' team. And, crucially, that meant the company would be under the leadership of Waste Connections' firebrand CEO Ron Mittelstaedt.
"The first and most important thing that we had to figure out for the merger was structure," says Mittelstaedt. "We had to decide who would make up the board and executive management and what the legal structure would be. We only had an interest in pursuing the merger if we had total control of everything, which is ultimately what happened. We ended up with five out of the seven board members and 100 percent of our executive team staying intact during the entire process of the merger."
The finalized merger, which took place on June 1, 2016, has allowed Waste Connections to double in size in terms of revenue and employees. According to Michael Hoffman, managing director, environmental services research for Stifel, Waste Connections' revenue is now approximately $4.2 billion, and its total number of employees is approximately 15,500. This merger also makes the company present in 39 states and six of the 10 Canadian providences, making it the largest waste management company in Canada. read more >>