Scottsdale-based Allied Waste Industries, the nation’s second-largest waste hauler, said Tuesday it completed the sale of collection businesses in three states to Waste Management.
Allied Waste said the Waste Management deal, valued at $73 million when announced in late April, includes hauling operations in Myrtle Beach, S.C.; Augusta, Ga.; and Pitkin and Garfield Counties in Colorado.
The operations represent about $125 million in annual revenue. Waste Management is the nation’s biggest trash hauler. Allied Waste also expects to close the sale of collection, recycling and transfer assets in New Jersey, pending regulatory approval.
The sales should help Allied Waste trim debt, said Standard and Poor’s analyst Stewart Scharf. He doesn’t own any shares. ‘‘They still have a long way to go,’’ he said of Allied Waste. ‘‘They’ll continue to sell assets and pay down debt.’’
As for Waste Management, he said the assets are a good fit as the country’s biggest trash hauler tries to streamline its operations more efficient. The company Monday unveiled its second major restructuring this year, saying it would eliminate about 800 jobs.
Allied Waste has continued chipping away at its $8 billion-plus debt, which resulted mostly from the acquisition of former rival Browning Ferris Industries. The debt has dropped by $158 million in the first quarter to $8.72 billion.
Tom Ryan, vice chairman and executive vice president, has said the company’s goal is to reduce its debt by $1 billion this year.
Calls from the Tribune to Allied Waste headquarters Tuesday went unanswered. Allied Waste also agreed to sell units with $75 million in annual revenue in South Florida to Waste Management for about $40 million.
Allied Waste said the sales and the pending deal in New Jersey should satisfy about one-third of its asset-sales target for the year.
"They still have a long way to go. They’ll continue to sell assets and pay down debt."