2023-04-24 08:01:20 ET
- Casella Waste Systems ( NASDAQ: CWST ) said on Monday that it agrees to acquire collection, transfer, and recycling operations in Pennsylvania, Delaware, and Maryland from GFL Environmental ( NYSE: GFL ) for a purchase price of $525M.
- The proposed deal includes nine hauling operations, one transfer station, and one material recovery facility with aggregate annualized revenues of ~$185M.
- The pending acquisition of solid waste assets is a natural extension to Casella’s existing footprint in the Northeast and offers future organic and inorganic growth opportunities.
- The deal is expected to generate ~$185M of revenues and $43M of EBITDA during the first 12-months.
- In addition, Casella expects to generate ~$8M of incremental annual synergies and benefits by year three of operations and cash flow benefits over a multi-year period.
- The addition is not subject to any financing conditions and Casella expects to fund the purchase price through a combination of cash on hand, revolving credit facility borrowings, and from a planned new Term Loan A under its existing senior secured credit facility.
- The deal is expected to close by the Q3 of 2023.
For further details see:
Casella to acquire certain operations in Pennsylvania, Delaware, and Maryland from GFL Environmental