Trash Collectors May Be Coming for Mom-and-Pops
April 15 2019 - 01:15PM
Dow Jones News
By Lauren Silva Laughlin
The garbage big boys are bulking up. On Monday, the largest U.S.
trash collector, Waste Management, picked off the fourth-heftiest
in the sector, Advanced Disposal Services, in a $2.9 billion deal.
Recent consolidation leaves only small players to scoop up.
Nearly a fifth of the industry is made up of private companies
with annual revenue of less than $100 million, according to
Oppenheimer. Acquisition sizes are tiny -- for Waste Management,
smaller deals in existing markets run about $3 million. An industry
roll-up in the past decade left 4,000 private operators.
Pressure to consolidate remains intense. China recently reduced
the buying of recycled cardboard, which sent prices plummeting. As
a result, companies such as Waste Management have been forced to
look at how municipalities pay for services, among other
things.
Going into a new town with some muscle can't hurt. With recent
tax changes keeping valuations afloat, Waste Management's trash
binge probably won't stop.
Write to Lauren Silva Laughlin at
lauren.silvalaughlin@wsj.com
(END) Dow Jones Newswires
April 15, 2019 13:00 ET (17:00 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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