Deal represents one of the biggest solid-waste company acquisitions in more than a decade
Waste Management Inc. is planning to buy their competitor Advanced Disposal Services Inc. for around $2.9 billion. This acquisition is one of the biggest solid-waste buy outs in more than a decade.
Advanced Disposal is a waste and recycling collector created in Ponte Vedra, Fla. The company had a $1.56 billion revenue in 2018. Advanced Disposal Inc., "works in the eastern part of the U.S., mainly in 16 states. It serves roughly 2.8 million residential customers and 200,000 commercial customers, and it owns or operates around 60 landfills and recycling centers." (Prang & Lombardo). The company basically handles the waste/recycling in the east side of the United States while Waste Management Inc. handles almost 48 states.
Compared to Advanced Disposal Inc., "Waste Management is the largest solid-waste company in the U.S., with a market value of more than $40 billion. It owns or operates roughly 250 landfills, the largest network in the country." (Prang & Lombardo). Waste Management is trying to buy out their competitor so they can expand their company to the east of the United States.
This article relates to marketing because when a company buys out their competitor, it usually means that the competitor is becoming a threat. In this case, Waste management saw that Advanced Disposal was growing so they took action to buy them and save them trouble in the future. Waste management also did this so they can expand their business to the eastern side of the United States. Maybe the company is trying to handle the waste/recycling throughout the whole country. Waste Management also did this so they can make it public that they are a big competitor and so the public can see that they're actually a big company. Because Waste Management did this, they gained publicity and in marketing, publicity is always a good plan.
I choose this article because it surprised me that Waste Management was buying another waste company for so much money. I had no idea how much they were worth until now and I see that Waste Management is trying to grow even further to the east side of the United States.
Source: By Allison Prang & Cara Lombardo
Updated April 15, 2019 7:32 a.m. ET
https://www.wsj.com/articles/waste-management-to-buy-advanced-disposal-services-for-about-2-9-billion-11555324411?mod=searchresults&page=1&pos=5
This article relates to marketing because when a company buys out their competitor, it usually means that the competitor is becoming a threat. In this case, Waste management saw that Advanced Disposal was growing so they took action to buy them and save them trouble in the future. Waste management also did this so they can expand their business to the eastern side of the United States. Maybe the company is trying to handle the waste/recycling throughout the whole country. Waste Management also did this so they can make it public that they are a big competitor and so the public can see that they're actually a big company. Because Waste Management did this, they gained publicity and in marketing, publicity is always a good plan.
I choose this article because it surprised me that Waste Management was buying another waste company for so much money. I had no idea how much they were worth until now and I see that Waste Management is trying to grow even further to the east side of the United States.
Source: By Allison Prang & Cara Lombardo
Updated April 15, 2019 7:32 a.m. ET
https://www.wsj.com/articles/waste-management-to-buy-advanced-disposal-services-for-about-2-9-billion-11555324411?mod=searchresults&page=1&pos=5
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