THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Friday, February 23, 1996 TAG: 9602230574
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY TOM SHEAN, STAFF WRITER
LENGTH: Short : 49 lines
Republic Industries Inc., the Fort Lauderdale-based company that has agreed to buy three waste-hauling companies controlled by Dwight C. Schaubach, said Thursday it will pay about $37 million in stock.
Republic will exchange about 1.3 million of its shares for Area Container Service Inc. and Incendere Inc. in Chesapeake and Smithton Sanitation Inc. in Washington, N.C., said David A. Potts, Republic's director of finance.
Republic's shares, which are traded in the Nasdaq National Market System, closed Thursday at 28 3/8.
The three companies being acquired were started by Schaubach, a veteran of the waste-hauling industry in Hampton Roads. He and his brother Elliott also launched a Norfolk waste-collection company, Bay Disposal Inc., in the early 1970s. They sold Bay Disposal to Chambers Development Co. in Pittsburgh in 1989.
Area Container provides waste-removal and recycling services in Southeastern Virginia. Smithton Sanitation offers similar services in eastern North Carolina. The two companies together have 11,000 customers.
Incendere collects medical waste from 7,000 customers in Virginia and six other states between New Jersey and Georgia.
Republic said Area Container, Smithton Sanitation and Incendere have combined annual revenues of $23 million.
The transaction, which is scheduled to close later this month, will not include Johns Brothers Inc., a Norfolk heating-oil dealer and security-alarm company, Potts said. Schaubach bought a controlling stake in Johns Brothers on Feb. 1.
Potts said the management of Area Container, Smithton Sanitation and Incendere will remain in place after the acquisition. All three companies will keep their existing names.
Republic's acquisition agreement is the latest development in its aggressive push into the waste-disposal and security-alarm businessses. Republic intends to provide the three Schaubach companies with resources needed to continue their expansion into new markets, Potts said.
Hartley Dewey, vice president of finance at Incendere, said Incendere expects to expand its operations along the East Coast. Area Container and Smithton Sanitation plan to broaden their operations in Virginia and North Carolina and to push into Maryland, he said. by CNB