G.I. Industries, a major rubbish collector in eastern Ventura County, has entered into an agreement to be bought by Western Waste Industries, a Carson-based waste collection company.
G.I. said the deal is valued at about $22 million, but much of that includes G.I.'s debts that Western Waste has agreed to assume.
Under the terms of the buyout, G.I. shareholders will receive one share of Western common stock plus $4 for every 20 shares of G.I. common stock they own. Members of G.I.'s board of directors and several other shareholders, including company officers, will receive no cash, but will get one share of Western stock for every 20 shares of G.I. stock they own.
Western Waste's stock closed Monday at $18.50 per share, up 75 cents from Friday's close. G.I.'s stock has been priced at about $1.50 per share.
The deal follows an abandoned offer last year by Republic Waste Industries to buy G.I. for $15 million in stock. G.I. has sued Republic for damages, alleging the company breached its agreement to buy G.I.
The Western Waste deal has been approved by G.I.'s board of directors, and a special meeting of shareholders will be held within three months to vote on the proposal.