Republic Services to Purchase US Ecology for About $1.5 Billion

Republic Services Inc. agreed to buy smaller waste-management rival US Ecology Inc. for $48 a share in cash, or roughly $1.5 billion.

The transaction will immediately add to adjusted earnings and free cash flow, Republic said Wednesday in a statement. The Phoenix-based company said it expects about $40 million in cost synergies within three years.

Shares of US Ecology surged 68% to $47.25 at 9:30 a.m. in New York. Republic Services dropped 1.1% to $125.53.

US Ecology handles the disposal and recycling of non-hazardous and toxic waste for businesses and governments, according to its website. Republic Services is ...