NEW YORK • Waste Management is pushing into the eastern U.S. by paying $3 billion for its smaller rival, Advanced Disposal Services.
The country’s largest collector of trash and recycling said Monday that it will pay $33.15 per share for Advanced Disposal, a 22 percent premium for the stock. It is also taking on $1.9 billion of the company’s debt.
Waste Management, based in Houston, has about 21 million customers.
The deal will add more than 3 million residential and industrial customers, mostly in the eastern half of the U.S., where Advanced operates. Advanced Disposal Services is based in Ponte Vedra, Fla.
The deal adds to Waste Management’s existing collection and recycling centers.
The deal is expected to close by the first quarter of next year.
Both companies operate in the bistate area.
Advanced Disposal provides waste and recycling services to nearly 170 municipalities in the state, with operations based in Bethany, Boonville, Macon and Moberly. In addition to collection services, the company’s Missouri footprint includes three transfer stations and one landfill.
Waste Management runs the Milam landfill at Interstates 55-70 and Illinois 203 and the Cottonwood Hills landfill in Marissa. It also has transfer stations in De Soto and Kimmswick.
Waste Management shares rose 2.4 percent, closing at $104.26. Advanced Disposal rose nearly 18 percent to close at $31.99.