05.03.2016 Views

SCV Reader March 2016

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

<strong>March</strong> <strong>2016</strong> THE <strong>Reader</strong> • 11<br />

Chiquita Canyon parent seeks merger<br />

By Brandon Lowrey<br />

Staff Writer<br />

The Texas-based company that owns<br />

the Chiquita Canyon Landfill is seeking<br />

Canadian citizenship. Waste Connections<br />

Inc. is asking for shareholder and governmental<br />

approval to merge with Canadian<br />

waste hauler Progressive Waste Solutions<br />

Ltd. in an all-stock deal that would leave<br />

Waste Connections shareholders with 70<br />

percent of the combined company, and five of<br />

seven seats on the board.<br />

The proposed deal is structured as a reverse<br />

merger. This means that on paper, Progressive<br />

Waste is acquiring Waste<br />

Connections. But Waste Connections shareholders<br />

and executives will be in charge of<br />

the combined company (which will, of<br />

course, be named “Waste Connections Inc.”)<br />

The move would grow Waste Connections<br />

in a big way, allowing it to take over Progressive<br />

Waste’s operations in 14 states and six<br />

Canadian provinces. The combined company<br />

would have projected revenue of $4.1 billion<br />

and maintain its U.S. headquarters in The<br />

Woodlands, Texas, and its Canadian headquarters<br />

in Ontario, Canada, according to<br />

forms filed with the U.S. Securities and Exchange<br />

Commission.<br />

“Under our leadership, we believe we can<br />

instill the corporate culture, safety focus, operational<br />

excellence and accountability that<br />

have served us so well and which we believe<br />

are necessary for long-term success within<br />

Progressive Waste's complementary markets.<br />

These improvements, together with expected<br />

immediate synergies and other cash<br />

flow benefits, should accelerate value creation<br />

for both companies' shareholders,”<br />

Waste Connections CEO Ronald J. Mittelstaedt<br />

said in a prepared statement about the<br />

proposed merger.<br />

“Put simply, we believe this combination<br />

creates a company uniquely positioned with<br />

industry-leading operating and free cash flow<br />

margins, together with the balance sheet<br />

strength, to drive further growth and increase<br />

the return of capital to our shareholders."<br />

Its service area is not the only thing that<br />

Waste Connections wants to expand. The<br />

company has been fighting to keep the Chiquita<br />

Canyon Landfill operating until 2037,<br />

which would grow it out significantly and<br />

double the amount of trash it can take in,<br />

much to the chagrin of local environmental<br />

groups.<br />

Those groups, including Santa Clarita Organization<br />

for Planning and the Environment,<br />

Citizens for Chiquita Canyon Landfill<br />

Compliance and other Val Verde residents<br />

lodged a complaint with the county in June,<br />

alleging that the county deprived Spanishspeaking<br />

residents of a chance to participate<br />

in the approval process by withholding Spanish<br />

translations of documents related to the<br />

proposed expansion project. County officials<br />

and the landfill owners denied those allegations.<br />

The groups want the 639-acre landfill to<br />

close by 2019 or when it reaches 23 million<br />

tons of trash, under a 1997 agreement between<br />

the unincorporated community of Val<br />

Verde and the landfill's previous owner, The<br />

Newhall Land and Farming Co. The ink dried<br />

on that deal long before Waste Connections<br />

bought the landfill in 2009, and the groups<br />

argue that the agreement is still binding.<br />

Waste Connections now wants to expand<br />

the landfill’s footprint from 257 acres to 400,<br />

and double its trash intake to 12,000 tons per<br />

day.<br />

Chiquita Canyon had previously been expanded<br />

in the late 1990s. Waste Connections<br />

won an expansion and 30-year extension for<br />

its Lancaster landfill in December 2011.<br />

The merger would not affect the company’s<br />

plans for the landfill, said Chiquita<br />

Canyon District Manager Steve Cassulo.<br />

“It is business as usual,” he said. R<br />

Hilton to build hotel in Santa Clarita<br />

hilton hotels corporation will build a 107 room hotel under its brand of extended-stay homewood Suites hotels<br />

in Santa Clarita The hotel will be built between West Rye Canyon Road and Vanderbilt Way at the edge of<br />

the Valencia industrial Center next to embassy Suites and The Courtyard. Construction is expected to start<br />

next month with a completion date in July 2017.

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!