Waste Connections buys assets from Secure Energy Services

Waste Connections of Canada is buying 30 energy waste treatment and disposal facilities in Western Canada from Secure Energy Services Inc.

The deal is worth $1.075 billion.

The assets include 18 treatment, recovery and disposal facilities; six landfills; four saltwater disposal injection wells; and two disposal caverns. Secure Energy was required by the Canadian Competition Tribunal to divest the assets following its 2021 merger with Tervita Corporation.

The oil and gas exploration and production (E&P) waste treatment and disposal facilities are located in key Canadian oil and gas basins and serve a customer base that is largely oriented to production. The combined annual revenue being acquired by the company is currently estimated at approximately $300 million.

The transaction remains subject to customary closing conditions, including receipt of Canadian Competition Bureau approval, and it is expected to close during the first quarter of 2024.

“This acquisition represents a unique opportunity for outsized value creation from the expansion of our presence in Canada through a network of E&P waste treatment and disposal assets located in the most attractive and growing basins,” said Ronald Mittelstaedt, president and CEO of Waste Connections.

“The divestitures are a rare combination of high-quality, well-situated disposal and treatment assets with significant internal capacity for growth. With a heavy orientation towards serving customers engaged in energy production activity, these assets will be complementary to our U.S. R360 Environmental Solutions operations.”

Waste Connections provides non-hazardous waste collection, transfer and disposal services, including by rail, along with resource recovery primarily through recycling and renewable fuels generation. It serves approximately nine million residential, commercial and industrial customers in mostly exclusive and secondary markets across 44 states in the U.S. and six provinces in Canada. Waste Connections also provides non-hazardous oilfield waste treatment, recovery and disposal services in several basins across the U.S., as well as intermodal services for the movement of cargo and solid waste containers in the Pacific Northwest.