- Vaughan, Ontario-based Progressive Waste Solutions issued a press release explaining that the company "has commenced a review of strategic alternatives," and may consider selling its operations. Progressive retained JP Morgan Chase & Co. to work through financial alternatives and contact potential buyers, according to Bloomberg.
- Reports show Progressive is worth $2.7 billion, with shares reportedly declining 22% in the last 12 months in New York trading and about 8% on the Canadian exchange. In October 2015 the company painted a less optimistic earnings forecast than its earlier one of $500 million to $515 million — with the new estimate down to $480 million to $485 million. The adjustment, the company said, was due to higher-than-expected labor, repair and maintenance costs in its West region.
- The company — serving 4 million customers in Canada and the U.S. — is in preliminary discussions with unidentified potential businesses, however it may decide against pursuing a sale. Progressive said it will not comment on the review until it is completed.
In a statement, Progressive explained that there "can be no assurance that the review of strategic alternatives will result in any change in the company's business strategy or in the consummation of any agreement or transaction, and if one does occur, what the economic and other terms and conditions of any transaction might be."
Progressive is not alone in considerations to sell its operations. Both acquisitions and mergers are increasing in waste management, as seen by such recent transactions as the sellout of two companies to Action Resources, as well as Inland Waste's purchases in two states.
Cumulatively, such business transactions reached $21 billion last year, an increase of 40% from 2014, according to data compiled by Bloomberg. Industry experts expect the pattern to continue into the foreseeable future.