|Traded as||NYSE: RSG
S&P 500 Component
Glenn A. Culpepper
Jeffrey A. Hughes
(EVP, General Counsel and Corp. Secretary)
|Revenue||$8.12 billion (2013)|
|Operating income||$1.321 billion (2013)|
|Net income||$572 million (2013)|
|Total assets||US$ 19.617 billion (2013)|
|Total equity||US$ 7.706 billion (2013)|
Republic Services, Inc is a waste management company. Once the third largest waste management firm in the United States, on June 23, 2008 it announced its intention to purchase its larger competitor Allied Waste Industries for US$6.1 billion in Republic Services stock. The merged company will retain the Republic name and become the second largest (after Waste Management, Inc) non-hazardous solid waste management company in the United States.
With its acquisition, Republic inherited Allied Waste's extensive market, including more than 10 million residential, commercial and industrial customers across 128 major markets in 40 states and Puerto Rico. Together with Waste Management, Inc, it handles more than half of all garbage collection in the United States.
On December 5, 2008, the merged Republic Services, Inc. relocated its corporate office from Fort Lauderdale, Florida to Phoenix, Arizona (Allied's current headquarters) and controls the following combined operations, compared here with their larger competitor Waste Management, Inc:
Some of Republic's facilities may be closed or consolidated during the integration.
On July 14, 2008, competitors Waste Management, Inc announced a $34 per share offer to acquire Republic Services. On July 18, 2008, the Republic Services board of directors announced that it would not enter negotiations with Waste Management and "remains committed to the Allied Waste transaction." On August 11, 2008, the bid was raised to $37 per share; this second offer was rejected on August 15, 2008.
On May 6, 2010 Allied Waste, a Republic Services company dedicated an upgrade to its Pacific Region Compost Facility (PRC) that will serve as the state’s first food composting facility. This is Oregon’s first facility permitted to accept all food waste including meat, bread and vegetable products. The Oregon Department of Environmental Quality (DEQ) found that almost 15 percent of the material landfilled in Oregon is food waste. Accepting food waste, as opposed to just yard waste, requires additional infrastructure and equipment. Allied Waste paved 2 acres (8,100 m2) and purchased and installed a composting system that has been used successfully in numerous facilities in Washington and California. Called “aerated static pile technology”, this system captures and controls emissions from the composting process using a negative air system and requires a smaller footprint than other methods, which also reduces the amount of storm water runoff.
On June 14, 2010, long time Republic CEO James O’Connor said he will step down in January 2011. Donald Slager, a former Allied executive and Republic’s current chief operating officer who started his career as a trash truck driver, will become the new chief.
The Wall Street Journal reported in June 2010 that one trash merger that has been successful from the start is Republic Services’ $4 billion acquisition of Allied in December 2008. The combined company has delivered at the high end of the annual savings projected when they did the deal ($191 million). Republic’s share price has since increased 27%, and big-name investors have directed their attention to the company. In mid-2009, Warren Buffett accumulated about 10 million shares (equaling a roughly 3% stake), while Bill Gates remains one of the largest investors, with a roughly 15% stake.
Environmental track record
In January 2010, the U.S. Environmental Protection Agency (EPA) Landfill Methane Outreach Program (LMOP) selected three Republic Services landfill gas-to-energy projects (LFGTE) as LFGTE Projects of the Year for 2009. Ox Mountain Landfill in Half Moon Bay, California; Jefferson City Landfill in Jefferson City, Missouri and Oak Grove Landfill in Winder, Georgia were honored at the annual LMOP conference in Baltimore in January 2010. Republic Services has developed LFGTE projects at more than one-third of the company’s 213 landfills. These 74 projects include:
- 52 electric generating plants
- 13 Medium Btu plants that provide LFG to industrial users
- 6 High Btu plants that produce pipeline quality gas
- 3 Leachate evaporators
The 52 electric projects generate 323 MW of electricity, enough to power about 192,000 homes. The 22 other projects provide or process more than 58,000 scfm of gas, energy needed to heat almost 200,000 homes. The environmental benefits of all of the projects combined are equivalent to removing approximately 4 million cars from the road.
On September 21, 2009, Newsweek released their "Green Rankings", a ranking of the 500 largest corporations on their track record on a number of environmental issues. Republic Services was ranked 448th out of 500 overall, and 46th out of 50 in their industry.
Republic Services has also had several high-profile fines levied against it by the U.S. Environmental Protection Agency (EPA) and states' Department of Environmental Protection in the last several years.
In 2002, Allied Waste (then its own company, as this was prior to the merger) was ordered to pay a fine of $782,550 by the EPA and spend $2.3 million on an environmental project to improve air quality following violations of the Clean Air Act in Roxbury, Massachusetts.
- Stewart Bailey. Republic Agrees to Buy Allied Waste for $6.1 Billion. Bloomberg.com. June 23, 2008. http://www.bloomberg.com/apps/news?pid=20601087&sid=aSFcQM.YihGc&refer=home
- Allied partners with Bridgestone Firestone, Bandag Mar 4, 2008 retrieved 14 May 2008
- Aseltine, McRea, Modi, Shukla, and Sullivan. A Strategic Case Analysis: Waste Management Inc. Spring 2006. http://www.uhv.edu/bus/conference/samples/WM1stplace.pdf. 3.6.3. Summary of Competitive Analysis. "The three largest national companies, Waste Management, Allied Waste and Republic Services together handle more than half the solid waste generated in the United States today."
- REPUBLIC SERVICES/ALLIED WASTE FACT SHEET. http://www.republicallied.com/downloads/factsheet.pdf. Retrieved June 23, 2008.
- Waste Management offers to buy Republic Services: Financial News - Yahoo! Finance
- Republic Services, Inc. | Investor Relations | News Release
- Republic again rejects Waste Management buyout bid - Yahoo! Finance
- Hall, Bennett (2010-05-06). "Out of the landfill, into the garden". Gazette-Times. Retrieved 10 July 2010.
- Johnson, Melica (2010-05-06). "New facility aims to transform table scraps to compost". KATO News. Retrieved 10 July 2010.
- Lathrop, Steve (2010-05-07). "Allied unveils food compost facility". Albany Democrat-Herald. Retrieved 10 July 2010.
- Corkery, Michael (2010-06-29). "Trash Talk: Why Republic-Allied Merger Worked". Wall Street Journal. Retrieved 30 June 2010.
- Schoenmann, Joe (2008-12-17). "Official calls for sort reform". Las Vegas Sun. Retrieved 20 December 2008.
- Republic Services LFGTE Projects in CA GA MO, MSW Magazine
- Newsweek, Greenest Big Companies in America – The 2009 List
- Newsweek | Green Rankings | Republic Services
- Countywide Landfill Owner to Pay $10 Million Fine | CantonRep.com
- Republic to Pay Fine, $36 Million to Fix Site | Las Vagas Sun
- Landfill Owners, Toxics Agency Settle | San Francisco Chronicle
- Agreement between Allied Waste, EPA Reached | Recycling Today