Casella Waste Systems Acquires Complete Disposal in Massachusetts and Acquires a Tuck-in Collection operation in Vermont
05 January 2018 - 12:59AM
Casella Waste Systems, Inc. (NASDAQ:CWST), a regional vertically
integrated solid waste, recycling and resource management services
company, announced today that it has acquired all of the
outstanding stock of Complete Disposal Company, Inc. and its
subsidiary United Material Management of Holyoke, Inc.
(collectively, “Complete”), for a total consideration of up to
$16.5 million. The acquisition closed on January 2,
2018.
Complete is an integrated solid waste services provider in the
greater Holyoke, MA marketplace. Complete provides
residential and roll-off collection services, operates a
construction & demolition processing facility, and operates a
750 tons per day solid waste transfer station with both truck and
rail transfer capabilities. Complete is expected to generate
approximately $17.0 million of revenues in 2018.
Also, on December 29, 2017, Casella acquired the commercial and
residential collection assets from a hauler in Vermont for a total
consideration of up to $1.8 million.
“In early August 2017, we announced to the market our updated
long-term strategic plan through 2021,” said John W. Casella,
Chairman and CEO of Casella Waste Systems. “As part of this
new 2021 plan, and as a result of the recent success of our focus
on reducing risk and improving our balance sheet, we are now able
to begin to use our capital in a manner that balances continued
delevering with smart acquisition and development
growth.”
“We have set a goal of $20.0 million to $40.0 million per year
of acquisition or development activity as part of this new
strategy,” Casella said. “We believe that the acquisition of
Complete and of this most-recent small tuck-in acquisition puts us
on track to meet our acquisition target in 2018.”
“As we have laid out over the last several quarters, given the
continued tightening of the disposal markets across the northeast
due to permanent facility closures and increased economic activity,
coupled with changes in the recycling markets, we believe that we
have an excellent opportunity to acquire select assets across our
market areas,” Casella said. “We expect that investing a
portion of our excess cash flows to grow our business will create
additional shareholder returns through higher cash flow growth
rates driven by new revenue streams, internalization to our
disposal facilities and cost synergies.”
“The Complete team has built an exceptional solid waste company
that is well regarded by its customers,” Casella said. “In
addition, this acquisition is a great strategic fit with our
operations and long-term plan. With this acquisition, we are
entering a new adjacent market in Western Massachusetts, enhancing
our construction & demolition capabilities with a
state-of-the-art processing facility, and adding rail and truck
transfer capabilities in the Western Massachusetts marketplace that
will see another 0.8 million tons of landfill capacity permanently
close in 2018. We expect to begin to internalize volumes from
this market to our Western New York landfills that have excess
annual capacity during 2018.”
About Casella Waste Systems, Inc.
Casella Waste Systems, Inc., headquartered in Rutland, Vermont,
provides solid waste management services consisting of collection,
transfer, disposal, and recycling services in the northeastern
United States. For further information, investors should
contact Ned Coletta, chief financial officer at (802) 772-2239, and
media should contact Joseph Fusco, vice president at (802)
772-2247, or visit the company’s website at
http://www.casella.com.
Safe Harbor Statement
Certain matters discussed in this press release are
"forward-looking statements". These forward-looking statements can
generally be identified as such by the context of the statements,
including words such as “believe,” “expect,” “anticipate,” “plan,”
“may,” “would,” “intend,” “estimate,” "will," “guidance” and other
similar expressions, whether in the negative or affirmative.
These forward-looking statements are based on current expectations,
estimates, forecasts and projections about the industry and markets
in which the Company operates and management’s beliefs and
assumptions. The Company cannot guarantee that it actually
will achieve the plans, intentions, expectations or guidance
disclosed in the forward-looking statements made. Such
forward-looking statements, and all phases of the Company’s
operations, involve a number of risks and uncertainties, any one or
more of which could cause actual results to differ materially from
those described in its forward-looking statements. Such risks
and uncertainties include or relate to, among other things: the
Company may not fully recognize the expected financial benefits
from the acquisition due to an inability to recognize operational
cost savings, general and administration cost savings, or landfill
internalization benefits, or due to competitive or economic factors
outside our control which may impact revenue and costs, or for
other reasons, and we may be unable to achieve our acquisition
goals for 2018 due to competition for attractive targets or an
inability to reach agreement with potential targets on pricing or
other terms. There are a number of other important risks and
uncertainties that could cause the Company’s actual results to
differ materially from those indicated by such forward-looking
statements. These additional risks and uncertainties include,
without limitation, those detailed in Item 1A, “Risk Factors”
in the Company's Form 10-K for the fiscal year ended
December 31, 2016 and in our Form 10-Q for the quarterly
period ended September 30, 2017, and in other filings that the
Company may make with the Securities and Exchange Commission in the
future.
The Company undertakes no obligation to update publicly any
forward-looking statements whether as a result of new information,
future events or otherwise, except as required by law.
Investors:Ned ColettaChief Financial Officer(802) 772-2239
Media:Joseph FuscoVice President (802) 772-2247
http://www.casella.com
Casella Waste Systems (NASDAQ:CWST)
Historical Stock Chart
From Apr 2024 to May 2024
Casella Waste Systems (NASDAQ:CWST)
Historical Stock Chart
From May 2023 to May 2024