miami garbage market getting tighter

Posted on November 18, 2012 by mcooper

Financially troubled Swisher Hygiene Inc. is selling its Choice Environmental Services subsidiary to Progressive Waste Solutions Ltd.

Swisher Hygiene, which is struggling to file past financial reports with the U.S. Securities and Exchange Commission, will receive $123.3 million for Choice Environmental. The selling price could increase by $1.75 million if a revenue target is met.

Choice has more than 150,000 residential and 7,500 commercial customers in Southeastern, Southwestern and Central Florida. The company operates six hauling operations and three transfer and material recovery facilities.

“We have been pleased with the operations of our Choice subsidiary over the past year-and-a-half and we will miss having the Choice team as a part of the Swisher Hygiene family,” said Thomas Byrne, chief executive officer of Swisher Hygiene, in a statement.

“However, during this period we determined that we could provide our customers with the same benefits through a less capital intensive, more cost-effective approach by partnering with other service providers to cross-sell waste services on a national scale,” he said.

For Progressive Waste, the purchase continues the company’s push into the Florida market, where it already established a presence when it previously acquired Waste Services Inc.

Choice Environmental brings an additional $72 million in annual revenue to Progressive Waste.

“As one of the largest independent waste and recycling service providers in Florida, Choice Environmental brings residential, commercial and industrial collection operations, along with transfer and material recovery facilities, that are well-positioned in southern and central Florida,” said Joseph Quarin, chief executive officer of Progressive Waste, in a statement.

Swisher Hygiene said the company remains dedicated to providing hygiene and sanitation services to its nationwide customer base.

The company had viewed solid waste management as a natural extension of its other hygiene and sanitation services, such as providing soap and cleaning chemicals to businesses. But the initiative fell short of the company’s vision after Swisher Hygiene fell into financial difficulties.

Swisher Hygiene stock soared on the news of the sale Friday morning with shares jumping more than 40%.

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