Waste Connections Purchases Secure Energy Services Assets, Expands in Western Canada

Waste Connections has announced an agreement with Secure Energy Services to acquire 30 energy waste treatment and disposal facilities in Western Canada.

The $791 million in assets (CAD$1.075 billion) are part of a divestiture required as a result of a 2021 merger between Secure and Tervita Corporation.

"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," commented Ronald J. Mittelstaedt, president and CEO, in a statement. "The divestitures are a rare combination of high-quality, well-situated disposal and treatment assets with significant internal capacity for growth."

Mittelstaedt added that the acquisition complements the company's U.S. R360 Environmental Solutions operations.

The energy assets Secure divested include 18 treatment, recovery and disposal facilities; six landfills; four saltwater disposal injection wells; and two disposal caverns, with an estimated revenue of $280 million (CAD$300 million).

The transaction is expected to be finalized in Q1 2024. Once completed, the assets are expected to grow EBITDA margins more than 50 basis points, Mittlestaedt said.

"Moreover, we also expect this transaction to be accretive to earnings per share and free cash flow margins," he said.

Source: Waste Connections