SECURE announces a $1.075B asset sale to Waste Connections

CALGARY — SECURE ENERGY Services Inc., a waste management and energy infrastructure company, announced that it has entered into a definitive agreement with Waste Connections Inc. to sell the facilities formerly owned by Tervita Corporation that were ordered to be divested by the Competition Tribunal for $1.075 billion in cash plus approximately $75 million for certain adjustments as provided in the Agreement for total estimated cash proceeds of $1.150 billion.

“Despite the challenging circumstances leading to and associated with completing this sales process, we believe the Transaction, including the counterparty, are beginning to highlight the underlying value of SECURE’s businesses and represent another meaningful step forward in pursuit of our strategy as one of Canada’s sector leading waste management and energy infrastructure organizations,” said Rene Amirault, Chief Executive Officer of SECURE.

The strategic impact of this Transaction hopes to solidify SECURE’s position in the waste management sector. Following the close of the Transaction, the Corporation remains the market share leader of industrial and energy waste infrastructure in western Canada and North Dakota. SECURE’s business is expected to continue to deliver robust margins, and a stable cash flow profile underpinned by recurring volumes driven by industrial waste, metals, and energy markets.

The Transaction has been carefully considered by SECURE’s management and Board of Directors, and the Corporation continues to believe there are strong grounds for appeal of the Competition Tribunal’s decision.

The Agreement outlines the sale of the Facilities to Waste Connections for proceeds of $1.075 billion plus approximately $75 million in certain adjustments as provided in the Agreement. The Corporation anticipates the Transaction to close in the first quarter of 2024 (“Closing”), subject to regulatory approval by the Competition Bureau, and the satisfaction of customary closing conditions.

Over 250 SECURE operational and support staff are expected to join the Waste Connections team upon closing the Transaction.