Casella acquires assets of Consolidated Waste Services

Casella Waste Systems Inc., a regional solid waste, recycling and resource management services company headquartered in Rutland, Vermont, has signed a purchase agreement to acquire the assets of Consolidated Waste Services LLC and its affiliates (dba Twin Bridges), based in Albany, New York.

Twin Bridges, a solid waste management company, provides residential, commercial and industrial collection, transfer and recycling processing services.

The proposed acquisition, which is expected to generate annualized revenues of $70 million, includes two collection operations, a transfer station, a material recovery facility (MRF), an office building and several satellite properties.

“We are excited about the proposed acquisition of Twin Bridges,” says John W. Casella, chairman and CEO of Casella Waste Systems. “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.

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“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," he adds.

With a transfer station and MRF that were both built in the last three years, Casella says Twin Bridges has “high-quality assets and operations” that will complement the company’s existing operations, as well as provide additional opportunities for the internalization of waste and recyclables.

In terms of financial and cash flow attributes, the acquired operations are anticipated to generate $1 million in net income and $18 million of earnings before interest, taxes, depreciation and amortization, or EBITDA, during the first 12 months, according to Casella Waste Systems. Further, the company says it expects to generate approximately $4 million of incremental annual synergies and benefits by year three of operations. This will be possible through route efficiencies, internalizing waste and recycling volumes and other operational improvements.

Twin Bridges has a collection revenue profile similar to Casella’s, with approximately 80 percent of its revenues in residential and commercial collection lines of business. Revenues from construction and demolition volumes comprise approximately 7 percent of the company’s total revenue.

The asset purchase of Twin Bridges, which was signed June 9, is expected to close by the fourth quarter of this year, Casella Waste Systems says.

This purchase follows the company’s pending acquisition of collection, transfer and recycling operations in Pennsylvania, Delaware and Maryland from Ontario-based GFL Environmental Inc.

In an April news release announcing that purchase, the company says the addition of these operations will provide solid financial benefits to help drive continued cash flow growth, generating approximately $185 million in revenue in the first 12 months.