Republic Services, Inc. (RSG) recently entered into an agreement to acquire Tervita, LLC – an environmental waste solutions subsidiary of Tervita Corporation, for an undisclosed amount.
Tervita is a premium quality service provider offering oilfield waste services and operates three kinds of waste management and disposal facilities. It has a proven track record of efficient safety and regulatory compliance across its entire operational footprint in North America. This acquisition is expected to strengthen Republic Services in the E&P (Exploration & Production) waste sector and position it well for harnessing future growth opportunities.
On the other hand, the divesture would enable Tervita to focus on the Canadian market while offloading its U.S. operations. Republic Services is expected to benefit from Tervita's expertise and penetration in the U.S markets. With the help of Tervita, Republic Services is expected to improve on its environmental protection front while achieving growth in its major activities of waste handling, recovery and disposal.
Republic Services is the second largest domestic non-hazardous solid waste company in the U.S. It provides non-hazardous solid waste disposal services for commercial, industrial, municipal and residential applications through a network of collection companies. The company is focusing on a series of quality acquisition opportunities, primarily of recycling assets, which is likely to act as a catalyst for a healthy long-term growth within its top 25 markets.
Republic Services currently has a Zacks Rank #3 (Hold). Other stocks that look promising and are worth a look include FTI Consulting, Inc. (FCN) and CBIZ, Inc. (CBZ), carrying a Zacks Rank #1 (Strong Buy), and Waste Connections Inc. (WCN) carrying a Zacks Rank #2 (Buy).
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