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August 2, 1997Republic buying Briggeman Disposal Inc.
MERGERS: The $16.5 million deal for Los Alamitos-based Briggeman requires councils' OK.
By ANTONIO A. PRADO
The Orange County RegisterRepublic Industries plans to strengthen its position in Orange County's residential trash-pickup market with a proposed $16.5 million buyout of family-owned Briggeman Disposal Inc. of Los Alamitos.
The deal must be approved by the city councils involved.
Briggeman would become a Republic subsidiary. The Briggeman name, familiar to nearly 80,000 residents in the three cities it serves, would stay on its trucks. The name also would be added to a number of smaller waste firms in Los Angeles County's South Bay that Republic recently acquired.
George Briggeman Jr., president and chief executive officer of the company his father started in 1957, said Friday that he would swap his stock for $16.5 million in Republic common stock. He now owns all of the Briggeman stock.
Stock in Republic, which has its West Coast offices in Anaheim, closed at $24.43 on Friday, down 18 cents.
Briggeman would become a Republic regional vice president under a long-term employment pact.
Briggeman said his firm would add an estimated $8.3 million to Republic's $2.3 billion in annual revenue. Fort Lauderdale, Fla.-based Republic owns National Car Rental, Alamo Rent-a-Car and Value Rent-a-Car, as well as an automobile financing company.
Earlier this year, Republic bought Taormina Industries, which owns Anaheim-based Consolidated Volume Transporters. Republic also owns Bel-Art Disposal, which holds a trash franchise in Long Beach.
Industry giant Waste Management Inc., which has several franchises in south county, is Republic's biggest competitor in Orange County.
Harris W. Hudson, chairman of Republic's solid-waste-management division, called the proposed buyout "a perfect fit.
"It provides us with a sound consolidation of collection routes between these locations, while solidifying Republic's position," Hudson said.