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 Inc., 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, Inc. is based in Ponte Vedra, Florida.
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.