Republic Acquires Allied Waste Industries For $6.1 Billion

Fort Lauderdale, FL (AHN) - Republic Services, the third top player in North America's waste management industry, is set to buy out second ranking Allied Waste in a $6.1 billion all stock deal.

Under the transaction, Allied will own 52 percent of the new company, and its investors will receive 0.45 Republic shares for each Allied share worth $14.04.

The combined company will retain the name Republic Services, and will be run by Republic Chairman and CEO James O' Connor. Allied's Don Slager will be the new President and COO. At the same time, five representatives from both Republic and Allied will sit on the executive board.

The newly-formed Republic Services will become the second largest trash hauler in the region, with an expected annual revenue of $9 billion and a $12 billion market capitalization.

Some 35,000 employees will be extending Republic's environmental waste management service to over 13 million residents across 40 U.S. states and Puerto Rico.