Republic Services acquires Shamrock Environmental

CLEVELAND - In a recent transaction, Republic Services, Inc. (NYSE: NYSE:RSG), a major North American waste management company with a market capitalization of $72.75 billion, has acquired Shamrock Environmental, a prominent provider of industrial waste and wastewater services. According to InvestingPro data, Republic Services boasts a perfect Piotroski Score of 9, indicating exceptional financial strength. Brown Gibbons Lang & Company (BGL), an independent investment bank, advised Shamrock on the deal, leveraging its expertise in environmental infrastructure.

Shamrock Environmental, founded in 1994 and based in Browns Summit, North Carolina, operates a vertically integrated platform that manages recurring liquid waste for a broad commercial and industrial customer base across more than 20 states. The company’s network includes highly permitted facilities and a suite of complementary services.

Phoenix, Arizona-headquartered Republic Services is recognized as one of the largest environmental services companies in North America, offering a variety of services including recycling, solid waste, and hazardous waste management to residential, commercial, and industrial sectors. The company generates annual revenue of $16.03 billion and has maintained dividend payments for 23 consecutive years. InvestingPro analysis reveals 15+ additional key insights about Republic Services’ performance and valuation, available to subscribers.

The BGL Environmental Services & Infrastructure investment banking team, which has been ranked #1 in transaction volume within the environmental services sector in North America since 2016 by Pitchbook.com, played a key role in advising the transaction. BGL’s team specializes in services related to waste processing and disposal, water and wastewater treatment, and waste-to-energy markets.

While the specific terms of the acquisition were not disclosed, this transaction signifies a strategic expansion for Republic Services as it continues to extend its reach and capabilities in waste management and environmental services. The company’s stock is currently trading near its 52-week high, with a gross profit margin of 42.81%. For detailed analysis and comprehensive valuation metrics, investors can access the full Republic Services Pro Research Report, part of InvestingPro’s coverage of 1,400+ top US stocks.

The sale of Shamrock Environmental is part of BGL’s ongoing advisory work for companies in the middle market, where it focuses on mergers and acquisitions, capital markets, and strategic financial advice. BGL operates investment banking offices across several major U.S. cities and is part of REACH Cross-Border Mergers & Acquisitions, which provides the firm with a global reach for client services.

This news is based on a press release statement and provides a clear view of the recent developments without delving into speculative or promotional content.

In other recent news, Republic Services reported its fourth-quarter 2024 earnings, exceeding analysts’ expectations with an earnings per share (EPS) of $1.58, compared to the forecasted $1.41. However, the company slightly missed revenue forecasts, reporting $4.05 billion against the expected $4.08 billion. Meanwhile, Stifel analysts raised their price target on Republic Services shares to $257, maintaining a Buy rating, citing expected margin expansion due to strong pricing strategies and sustainability investments. Similarly, Raymond (NSE:RYMD) James increased its price target to $243, highlighting Republic Services’ growth through strategic mergers and acquisitions and potential gains from new environmental regulations. Oppenheimer also raised its price target to $238, following the company’s strong financial performance, surpassing fourth-quarter adjusted EBITDA and EPS expectations. Lastly, TD Cowen adjusted its price target to $235, maintaining a Hold rating, reflecting a modest increase in long-term EBITDA estimates due to the company’s strategic initiatives. These developments underscore Republic Services’ ongoing financial growth and strategic focus on sustainability and acquisitions.

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