Waste management firm Secure Energy Services said it will divest some assets in Western Canada for a total of C$1.15 billion ($847.21 million) to fulfill Competition Tribunal’s conditions for its merger with Tervita.
The latest deal with Waste Connections is expected to close in the first quarter of 2024 after regulatory approval. It has agreed to pay Secure C$1.075 billion in cash and about C$75 million in certain adjustments.
Secure Energy said it was ordered by the Canadian Competition Tribunal to divest facilities owned by waste management services firm Tervita following their merger in 2021.
Following the completion of the deal, Waste Connections will acquire Secure Energy’s portfolio of 30 energy waste treatment, recovery, and disposal facilities in Western Canada, with a combined annual revenue of around C$300 million.
Adjusting for the impact of the sale, Secure lowered its 2024 capital spend forecast and said it now expects to spend C$60 million on sustaining capital and C$15 million on settling the firm’s retirement obligations, down from a previous forecast of C$85 million and C$20 million, respectively.