Waste Management Makes Acquistion - Analyst Blog
August 04 2011 - 12:39PM
Zacks
Waste Management Inc. (WM) recently announced
the acquisition of Access Computer Products Inc., a leading
provider of cell phone, ink and toner cartridge, and consumer
electronics reverse logistics, remarketing, and recycling services,
through its subsidiary WM Recycle America, L.L.C.
In addition, WM also acquired Mordell, LLC, Access’ re-commerce
partner responsible for refurbishing and selling used computer
equipment obtained through Access and other third party
suppliers.
This acquisition will further strengthen Waste Management's
position in North America as a leader in the recycling of e-waste,
which is fast becoming a major waste stream. Waste Management is
committed to providing solutions to its customers for managing
electronic wastes and this acquisition will help Waste Management
provide high value services to its customers.
With fast-changing technologies, electronic goods are becoming
obsolete in quick time, thereby creating a strong need for
electronic waste rmanagement. Twenty-six states in the US have
already mandated e-waste recycling programs.
This acquiistion will help Waste Management to achieve its
target of tripling the amount of material it recycles to 20 million
tons by 2020. The terms of the deal were not disclosed.
Waste Management recently posted its fiscal 2011 second quarter
results, recording an increase in profit to 54 cents per share
(excluding special items) in the second quarter of the year from 51
cents per share in the year-ago quarter. With this, the company has
missed the Zacks Consensus Estimate by a penny.
Revenues increased 6% to $3.35 billion from $3.16 billion in the
year-ago quarter, driven by higher commodity prices, improving
recycling volumes, and collection and disposal yield. It was higher
than the Zacks Consensus Estimate of $3.32 billion. It currently
maintains a Zacks #5 Rank (Strong Sell rating) on the stock.
Waste Management is the largest provider of comprehensive waste
management services in North America. The company provides
collection, transfer, recycling and resource recovery, as well as
disposal services to nearly 20 million residential, commercial,
industrial and municipal customers. It competes with
Republic Services, Inc. (RSG) and Casella
Waste Systems Inc. (CWST).
The company has a network of 390 collection operations, 345
transfer stations, 273 active landfill disposal sites, 16
waste-to-energy plants, 98 recycling plants and 119 beneficial-use
landfill gas projects.
CASELLA WASTE (CWST): Free Stock Analysis Report
REPUBLIC SVCS (RSG): Free Stock Analysis Report
WASTE MGMT-NEW (WM): Free Stock Analysis Report
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