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The Exclusive CaliforniaNewspaper I JE For The Sanitation Industry z Los Angeles,California DECEMBER, 1972 - 50c Per Copy VOL.V,NUMBER 12 ' Acquisitions and Mergers : The new giants of the refuse diminishing dump sites, greatly in the refuse business acquiring has merged his company with meet the demands of t" industry — public stock com- increasing costs of operation,and or merging with nearly 200 in- one of three major public stock dustry. It is goirg to require, panies with large pools of capital the need for ever-larger dependents. companies in the field. heavy capitalization and the most''> and highly developed solid waste capitalization to keep a refuse But in California, it appears, expert management teams' management systems — are company in operation, are the they have barely scratched the His System Disposal Company possible, and this is what the moving into California in force, factors in this prediction. surface. is now a subsidiary of SCA Ser- public stock companies are`,. and Ohanesian is competing for shares in the Only a highly capitalized public vices Inc., bringing into the industry.„ One source associated with one Western Regional Director of the Al Prather, formerly par( nation's largest potential market stock company, with the most of the major companies Boston-based corporation. In t. area. modern facilities and equipment, owner and general manager of estimates that the public stock discussing the new trend with Acquisition and merger are the and top management staffs can Carson Refuse Company, was last year or two to take in (either said: , 'new prime topics of conversation survive or meet the demands companies have expanded the REFUSE NEWS, Ohanesian one of the first in the area to opt:` in the industry as the giant placed on the industry today, by acquisition or merger) " for a merger with one of the large combines seek to strengthen their these predictions maintain. It perhaps 10 per cent of the is a fact that historically the public firms. His company foothold in the California market But a recent survey by refuse industry in California has always merged with Browning-Ferris, with lucrative sales offers or news indicates that there has operating companies nationally,"but haven't even made a dent in been under-capitalized and weak Industries,Inc.,the largest of the attractive stock-merger deals for been a lot more talk than action on management.Today,with the public corporations in the the thousands of independent on the California scene. California or in the Los Angeles need for automation, the business, last May. While still area.' problems, in- providing the local management ecological companies currently operating in But a recent survey by ecolo g• P the State. REFUSE NEWS indicates that The type of operation con- creasingly expensive equipment, for Carson Refuse Company, In the flurry of recent activity, there has been a lot more talk ducted in most areas of computerized operations, etc., a Prather also represents BFI in its' with seemingly scores of than action on the California California, and the established father and son business with little acquisition and merger activities , acquisitons and merger deals in scene. operations of many of our more than muscle and the will to in this area. process on any given day, there Nationally, according to a medium size and small in- work is going to be hard put to (Cont. p[► Page 9) are those in the industry who are recent Time Magazine report,the dependents have kept them from predicting that the days of the large public comapnies are becoming marginal operations on • small, independent refuse acquiring or merging with any mass scale. And, it appears, operator are numbered. "Many of the nation's 10,000 the independent operator is going The increasingly complex small collection companies". to be around for a long time in demands of solid wastes Statistics quoted in the Time California. management, environmental report show the three major impact considerations, public stock companies primarily This does not deny the fact that the large public companies are • making inroads, and many ig's Am finding their of-