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

Casella Waste Systems Inc CWST has signed an equity purchase agreement to acquire certain solid waste operations from GFL Environmental Inc. 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.
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