Two prominent environmental service firms supporting Canada's oil and gas industry have announced their agreement to merge.
Publicly traded Newalta Corporation and privately held Tervita will join together to be publicly traded under the Tervita name, the companies announced on Thursday.
The new joint company will provide waste processing, treating, recycling and disposal services, with 115 operating locations, approximately 2,000 employees and approximately 1,000 customers.
The new Tervita expects approximately $40 million to $45 million in annual synergies within two years, with associated one-time costs of $15 million to $20 million.
The combined new Tervita would have had net revenue of $751 million in 2017 compared to what would have been $662 million in 2016. The current outlook for customer spending and activity in 2018 is expected to be at least as strong as 2017, Tervita said.