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What: Shares of Waste Connections
So what: The company will buy R360 Environmental Solutions for $1.3 billion in cash. R360 adds exposure to waste services in oil-rich drilling areas like the Bakken and Eagle Ford Basins.
Now what: The deal is expected to be accretive, or add to earnings, but it will also add to the company's risk. Waste Connections doesn't have the cash to make the purchase on hand, so it will have to go to either the debt or equity markets to complete the deal. R360 has revenue of only about $300 million, so it's an expensive deal, and with the added risk the balance sheet poses, I would be a seller today.
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Fool contributor Travis Hoium has no position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDraw.
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