Waste Connections said on Monday that it would buy R360 Environmental Solutions, an oilfield treatment services company, for about $1.3 billion in cash, as it seeks to increase its toehold in the American energy boom.
Formed two years ago from the union of several smaller companies, R360 has become one of the big players in the business of cleaning up the oil and natural gas drilling fields that have sprouted across vast tracts of North America. Its services include cleaning up contaminated land, reclaiming oil from storage tanks and washing facilities.
R360 runs 26 facilities in Louisiana, New Mexico, North Dakota, Oklahoma, Texas and Wyoming. It generates about $300 million in annual revenue, according to Waste Connections' press release.
“We are extremely pleased about the opportunity to bring R360 into the Waste Connections family,†Ronald J. Mittelstaedt, Waste Connections' chairman and chief executive, said in a statement. “Through acquisition s and new facility development, R360 has created leading positions in key basins, providing closed loop oilfield waste services within an increasingly stringent regulatory environment.â€
He added that the deal is expected to add more than 4 percent to Waste Connections' profit margins as measured by consolidated earnings before interest, taxes, depreciation and amortization.
