Casella Waste Systems Acquires Complete Disposal Company

SEATTLE (Waste Advantage): Casella Waste Systems, Inc. announces 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, MAmarketplace.  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."

Courtesy: https://wasteadvantagemag.com