Secure Energy Services Inc., a waste management and energy infrastructure company, has reached a definitive agreement with Waste Connections Inc. to sell facilities previously owned by Tervita Corporation. The sale, mandated by Canada's Competition Tribunal, involves 29 facilities and is valued at $850 million (CAD 1.15 billion), comprising $790 million (CAD 1.075 billion) in cash and around $55.3 million (CAD 75 million) for specific adjustments. The divestiture is a result of a Competition Tribunal ruling in favor of the Commissioner of Competition's challenge to Secure's acquisition of Tervita, citing concerns about diminished competition in 136 relevant markets.

Secure's CEO, Rene Amirault, sees the transaction as a significant step forward in the company's strategy to become a leading waste management and energy infrastructure organization in Canada. While Secure believes there are grounds for appeal, the decision to proceed with the sale aims to enhance the company's financial position and flexibility for capital allocation.

The sale positions Secure as a market leader in industrial and energy waste infrastructure in western Canada and North Dakota. Waste Connections, the acquirer, is an integrated solid waste services company operating in 44 U.S. states and six Canadian provinces, offering non-hazardous waste collection, transfer, disposal services, and resource recovery. The transaction provides Waste Connections with a growth platform in the Canadian market, expanding its expertise in waste handling, recovery, and disposal.

Additionally, Secure Energy Services identified and divested various non-core assets, aligning with its strategy to optimize its portfolio and allocate resources to infrastructure-based businesses generating stable recurring revenue and significant free cash flow. The divestitures, including project management services, oilfield water management, consulting services, redundant equipment, and real estate assets, amounted to approximately $53.8 million (CAD 73 million) in aggregate gross proceeds.

The final disposition of these non-core assets is expected to close on December 15.