Republic Services Inc. (NYSE: RSG) closed its $485 million buy of Tervita LLC, a leading environmental waste solutions provider serving oil and natural gas producers in the U.S., Republic said Feb. 17.

Tervita, based in Canada, complements Republic's existing E&P business and provides customers with oilfield waste services across some of the most attractive domestic basins including the Permian, Eagle Ford and Bakken. It also broadens the company’s penetration into the $14 billion E&P waste market.

About 85% of Republic’s and Tervita’s combined E&P revenue is sourced from basins where drillers have lower break-even points. Tervita operates in seven basins that account for about 62% of drilling activity.

In December, Republic said the acquisition would hike its annual E&P revenue to $190 million, about 2% of revenue, from $40 million or about 0.5%.

"We are pleased that we were able to quickly close this transaction and believe this acquisition establishes a significant platform for us to expand into the E&P sector," said Brian Bales, executive vice president, Business Development. "We look forward to serving our new customers, as well as expanding our product portfolio to our existing E&P customer base."

Long-term growth is 6%-12% annually, Republic said.

Republic said in December that Tervita gives it a platform to establish a significant presence in the E&P waste sector with infrastructure assets in all major U.S. oil & gas basins. The company has a strong customer base and scalable operations that further leverage Republic’s existing infrastructure in E&P basins.

Tervita services include treatment, recovery and disposal as well as transportation, saltwater disposal injection wells and engineered landfills. The company employs more than 3,000 who serve the oil and gas, construction and mining industries, government and communities.

Republic Services Inc. is an industry leader in U.S. non-hazardous recycling and solid waste. Through its subsidiaries, Republic’s collection companies, transfer stations, recycling centers and landfills focus on providing reliable environmental services and solutions for commercial, industrial, municipal and residential customers.

Latham & Watkins LLP represented Tervita in the transaction with a corporate deal team led out of the New York office by partner Charles Carpenter with associates Kristin Mendoza and Jaymin Patel.

J.P. Morgan Securities LLC acted as exclusive financial adviser to Republic Services and Goldman, Sachs & Co. acted as exclusive financial adviser to Tervita Corp.

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