KANSAS CITY, KAN. ----- Waste Management, Inc. and aPriori Capital Partners L.P. today announced the signing of a definitive agreement under which a subsidiary of Waste Management will acquire the outstanding stock of Deffenbaugh Disposal, Inc. (“Deffenbaugh”).
“This proposed acquisition aligns perfectly with our goal of driving shareholder value by maximizing our focus on our core business,” said David P. Steiner, President and Chief Executive Officer of Waste Management. “It affords us the opportunity to expand our service offerings to residential, commercial, and industrial customers in Kansas, Missouri, Nebraska and Arkansas and enter an attractive market – Kansas City – where we currently have very limited presence. It also allows us to replace a portion of the earnings and cash flow from our pending divestiture of Wheelabrator Technologies, Inc. at an attractive price, while preserving our strong balance sheet.”
“Deffenbaugh’s management team runs a terrific business and the company’s employees operate it superbly. I am confident that the addition of Deffenbaugh to our operations will create years of shareholder value, additional benefits for customers in the region and opportunities for the employees of both companies to learn and grow from each other’s operational, customer service and community involvement expertise,” continued Steiner.
“This is an exciting day for Deffenbaugh,” said Jim Donahue, President and Chief Executive Officer, Deffenbaugh. “Today’s announcement is a testament to our strong business operation, deep community engagement and the hard work of our employees. I speak for all of us at Deffenbaugh when I say we are excited to be joining forces with Waste Management, the largest and most respected name in the industry.”
“Over the past five years, Deffenbaugh has modernized its fleet, improved operations efficiency and expanded its footprint. We are proud to have partnered with the team to build a world-class business,” said Susan Schnabel, Board Member and Co-Managing Partner at aPriori Capital.
With approximately 1,000 employees, Deffenbaugh provides services in the cities of Omaha, Neb., St. Joseph, Mo., Kansas City metropolitan area and Topeka, Kan., as well as in Northwest Arkansas.
In addition to these hauling operations, the company operates one municipal solid waste landfill, one construction and demolition landfill, two material recovery facilities, and seven transfer stations. In 2013, Deffenbaugh collected more than 1.7 million tons of waste and recyclable material with the majority processed at its recycling facilities or disposed at its landfills.
“Jim Donahue and the Deffenbaugh Industries team have been a strong and important presence in our entire Midwest region,” said Mark Holland, Mayor/CEO of The Unified Government of Wyandotte County/Kansas City, Kan.. “They adhere to highest standards of corporate leadership and community involvement. We look forward to Deffenbaugh’s continued engagement in our community.”
The transaction, which is subject to expiration or termination of the waiting period under the Hart-Scott-Rodino Act as well as other customary closing conditions, is anticipated to close in the next several months.
Stifel is serving as exclusive financial advisor to Deffenbaugh in connection with its acquisition by Waste Management.
