Casella Waste Acquires Select Operations Of GFL Environmental For $525M

Shivani Kumaresan
1 min read
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In this article:

  • Casella Waste Systems Inc (NASDAQ: CWST) has signed an equity purchase agreement to acquire certain solid waste operations from GFL Environmental Inc. (NYSE: GFL).

  • The company will acquire GFL's collection, transfer, and recycling operations in Pennsylvania, Delaware, and Maryland for $525 million.

  • The proposed acquisition includes nine hauling operations, one transfer station, and one material recovery facility with aggregate annualized revenues of about $185 million.

  • Casella expects the acquired operations to generate approximately $185 million of revenues and $43 million of EBITDA during the first 12-months.

  • The company expects to close the acquisition by the third quarter of 2023.

  • "After successfully extending our footprint into the adjacent Connecticut market with an acquisition in mid-2021, this acquisition will enable us to expand into the Mid-Atlantic region with these well-run solid waste operations that provide a platform for future growth," said Chairman and CEO John W. Casella.

  • 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 company held $71.2 million in cash and equivalents as of Dec. 31, 2022.

  • Price Action: CWST shares traded higher by 1.66% at $90.46 on the last check Monday.

  • Photo Via Company

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This article Casella Waste Acquires Select Operations Of GFL Environmental For $525M originally appeared on Benzinga.com

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