Casella Waste Systems, Inc. to Acquire the Assets of Consolidated Waste Services, LLC

RUTLAND, Vt., June 12, 2023 (GLOBE NEWSWIRE) -- Casella Waste Systems, Inc. (Nasdaq: CWST), a regional solid waste, recycling, and resource management services company, announced the signing of an asset purchase agreement on June 9, 2023, to acquire the assets of Consolidated Waste Services, LLC and its affiliates (dba “Twin Bridges”) for a purchase price of approximately $219 million in cash.   The proposed acquisition, which is expected to generate annualized revenues of approximately $70 million, includes two collection operations, one transfer station, one material recovery facility (MRF), one office building that can support future growth, and several satellite properties.

Twin Bridges is a solid waste management company located in the greater Albany, New York market that provides residential, commercial, and industrial collection, transfer, and recycling processing services.

“We are excited about the proposed acquisition of Twin Bridges,” said John W. Casella, Chairman and CEO of Casella Waste Systems, Inc. “Twin Bridges is a well-run company and provides a great opportunity to grow our services and increase disposal and recycling vertical integration. Their business fits well with our operations and will enhance our ability to deliver additional resource management services to our customers through their state-of-the-art MRF with robotic technology.”

“We have developed a significant appreciation for the Twin Bridges’ team given their strong commitment to delivering excellent service to their customers while taking care of their people. We look forward to welcoming their hardworking employees to the Casella team, and we look forward to a smooth transition,” Casella said.

Compelling Strategic and Financial Benefits

• Solid infrastructure complements existing operations.   Twin Bridges has high quality assets and operations that will compliment Casella’s operations and allow for additional opportunity for the internalization of waste and recyclables. Their transfer station and MRF were both built in the last three years, and their average frontline fleet age is just over three years.
• Strong financial and cash flow attributes with transaction.   The acquired operations are anticipated to generate approximately $70 million of revenues, $1 million of net income and $18 million of EBITDA¹ during the first 12-months. In addition, Casella expects to generate approximately $4 million of incremental annual synergies and benefits by year three of operations through route efficiencies, internalizing waste and recycling volumes, and other operational improvements. Given the structure of the transaction, Casella expects to recognize cash tax benefits of approximately $61 million over a multi-year period. Further, Casella does not anticipate significant replacement capital expenditures over the initial operating years given the health and age of the fleet along with the accompanying key facilities.
• Revenue profile consistent with existing collection portfolio.   The collection revenue profile is similar to Casella’s existing collection mix, with approximately 80% of the revenues in residential and commercial collection lines of business. Revenues from construction and demolition volumes comprise approximately 7% of their total revenues.