Advertisement
YOU ARE HERE: LAT HomeCollections

Republic Waste Agrees to Buy GI Industries

July 10, 1990

No management or service changes are planned by GI Industries, a major rubbish hauler in eastern Ventura County, after the company's agreement to be bought by Republic Waste Industries for $15 million in stock.

GI, with nearly 50,000 customers in Simi Valley, Moorpark and Thousand Oaks, will retain its name and continue to be headed by Manuel Asadurian Sr. after the merger is completed, said Daniel Van Rossen, GI's chief financial officer.

"We do not anticipate a change in operations; we do not anticipate a change in rates," he said.

GI's agreement with Republic, a Houston-based waste management concern, remains subject to approval by GI's stockholders, and GI management is "confident that it will receive overwhelming approval from the shareholders."

The major shareholders are the members of the Asadurian family, which took the company public in 1987 and still own 44% of its stock, which would be worth $6.6 million under the Republic Waste merger.

The Asadurians held outright control until late last year, when the company issued additional shares as part of its bid to regain its financial health after a diversification bid backfired.

GI's rubbish operations have always been profitable. But between 1987-89, it branched out into selling Mack Trucks and leasing cars, but the new ventures failed, leaving GI with losses of $1 million and $7.2 million in its 1988 and 1989 fiscal years, respectively.

GI agreed to the proposed merger in part because Republic also is a landfill operator, "which brings a whole new area of expertise to our company," Van Rossen said.

Advertisement
Los Angeles Times Articles
|
|
|