Waste disposal company Waste Connections Inc. said Monday that it wants to take advantage of growth in the domestic energy market by acquiring R360 Environmental Solutions Inc., which specializes in cleaning oil and natural gas drilling fields.
Waste Connections—which last year relocated to The Woodlands, just outside of Houston, from its Sacramento, California, headquarters—has agreed to pay $1.3 billion in cash to acquire R360. Houston-based R360 provides waste treatment, recovery, and disposal services to the energy industry with 26 facilities spread across Louisiana, New Mexico, North Dakota, Oklahoma, Texas, and Wyoming. The deal is expected to close in the fourth quarter, pending regulatory approval.
In its announcement, Waste Connections said the deal would allow it to expand its energy-related services at a time when drilling activity has increased across parts of North America—including the Permian and Eagle Ford basins, where R360 has operations.
Baker Botts is advising Waste Connections on the acquisition with a team that includes Houston-based corporate partners Theodore Paris and M. Breen Haire. Partner Daniel Kroll is advising on tax issues. Paris tells The Am Law Daily that the firm’s work on the deal builds on its existing relationship with Waste Connections, which has mostly involved representing the company in connection with various environmental matters.
Patrick Shea serves as general counsel for Waste Connections.
R360, meanwhile, has enlisted Wachtell, Lipton, Rosen & Katz as counsel on the transaction. Corporate partner Ante Vucic is leading a Wachtell team that also includes antitrust partner Joseph Larson, compensation and benefits partner Adam Shapiro, and restructuring and finance partner Joshua Feltman. Tax partners Jodi Schwartz and Joshua Holmes are also advising.