By Kyle Stucker
Hampton Union, August 1, 2014
[The following article is courtesy of the Hampton Union and Seacoast Online.]
HAMPTON — Waste Management Inc. has agreed to sell Hampton-based Wheelabrator Technologies Inc. for $1.94 billion in cash in order to "repurchase shares and repay debt," according to a release issued by the company Tuesday.
Waste Management said its sale of Wheelabrator, a waste-to-energy company with 17 facilities across the country, to Energy Capital Partners is expected to close later this year and still requires Federal Energy Regulatory Commission approval.
"This transaction aligns with our goal of driving shareholder value by maximizing our focus on our core business and reducing earnings volatility related to electricity sales," said David P. Steiner, president and chief executive officer of Waste Management. "We look forward to a long-term partnership with ECP through our waste-supply agreement."
In combination with its 17 waste-to-energy facilities, Wheelabrator owns or operates four independent power-producing facilities in the United States that process more than 7.5 million tons of waste and have a combined electric-generating capacity of 853 megawatts, according to the release.
The company also has four ash monofill landfills, three transfer stations and an ongoing development and construction project in the United Kingdom.
Wheelabrator reported approximately $845 million in total revenue in 2013.
Waste Management announced that as part of the sale, it will "enter into a long-term agreement to supply waste to certain WTI facilities upon closing."
"We appreciate the hard work and dedication of our Wheelabrator employees," Steiner said. "They made our waste-to-energy business successful, and we anticipate that the business will continue to be successful under ECP's ownership."
In 1988, Wheelabrator and Waste Management entered into a merger agreement to acquire common stock shares of WTI amounting to a 22 percent ownership interest, according to Wheelabrator's Web site.
The company became a majority-owned subsidiary of Waste Management in 1990.