Waste Connections acquiring 30 waste treatment, disposal sites in Canada

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Ontario-based Waste Connections of Canada Inc. has agreed to acquire a portfolio of 30 energy waste treatment and disposal facilities for $1.08 billion from Calgary-based SECURE Energy Services Inc.

The Western Canada-based facilities include 18 treatment, recovery and disposal facilities, six landfills, four saltwater disposal injection wells, and two disposal caverns. 

The facilities were previously owned by Tervita Corporation, which merged with SECURE Energy Services Inc. in 2021. All of the facilities represent the complete required divestitures as mandated by the Canadian Competition Tribunal following the merger, the companies stated.

The oil and gas exploration and production (E&P) waste treatment and disposal facilities are in key geographic Canadian oil and gas basins and serve a diverse customer base, Waste Connections of Canada announced in a statement. 

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The combined annual revenue of the facilities being acquired is currently estimated at $300 million.

“This acquisition represents a unique opportunity for outsized value creation from the expansion of our presence in Canada through a network of E&P waste treatment and disposal assets located in the most attractive and growing basins,” said Ronald Mittelstaedt, Waste Connections president and CEO. 

More than 250 SECURE Energy Services Inc. operational and support staff are expected to join the Waste Connections team when the agreement is finalized.

SECURE Energy Services Inc. CEO Rene Amirault said that once the transaction closes — potentially during the first quarter of 2024 — it is expected to “materially improve” the company’s financial position and capital allocation flexibility.

“Despite the challenging circumstances leading to and associated with completing this sales process, we believe the transaction, including the counterparty, are beginning to highlight the underlying value of SECURE’s businesses and represent another meaningful step forward in pursuit of our strategy as one of Canada’s sector leading waste management and energy infrastructure organizations,” Amirault announced in a statement.

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