December 21, 2011 5:55 PM
Article from CBS News
(AP) HOUSTON — WCA Waste Corp. said Wednesday that it has agreed to be acquired by investment fund Macquarie Infrastructure Partners II for about $526 million.
MIP II will acquire all of the outstanding common stock of WCA for $6.50 per share in cash, redeem all Series A preferred stock and either partially or completely refinance WCA's existing credit facilities.
The purchase price represents a premium of 30 percent over WCA's Tuesday closing stock price of $4.99.
Shares fell 8 cents, or 1.6 percent on Wednesday to close at $4.91. After the announcement, they rose $1.46, or nearly 30 percent, to $6.37 in after-hours trading. Over the past year shares have traded between $3.01 and $6.27.
Houston-based WCA is a non-hazardous solid-waste services company providing collection, transfer and disposal services to commercial, industrial and residential customers in 14 states in the Southeast and Midwest. It operates 25 landfills, 29 transfer stations and 29 collection operations.
The company's board unanimously approved the transaction, which is expected to close in the first quarter.
After closing, WCA's common stock will cease to be traded on the Nasdaq exchange.
CEO Tom J. Fatjo Jr. said in a statement that Macquarie Group has a demonstrated track record in the waste-management sector.
"Our employees and customers will benefit from their operational knowledge and should not see any impact on day-to-day services," he said. "Our investors will also benefit as this transaction provides an excellent opportunity to realize value."
The transaction will be financed through a combination of shareholder capital from MIP II and new underwritten credit facilities. The new credit facilities will be used to provide liquidity going forward, refinance existing credit facilities, and may also be used to refinance WCA senior notes due in 2019.
Macquarie Group provides banking, financial, advisory, investment and funds management services. Assets under management were about $317 billion as of Sept. 30.
Article from CBS News
