Casella Waste Systems finalized the purchase of assets from GFL Environmental in Delaware, Maryland and Pennsylvania on Friday.
The previously announced deal was valued at approximately $525 million. The package includes nine hauling operations, one transfer station and one MRF. Casella estimates the assets will generate annualized revenues of about $185 million.
Many of these assets came from GFL’s 2018 purchase of Waste Industries. According to a Casella financial filing, the transaction includes all equity interests in Waste Industries of Maryland and its wholly owned subsidiary Pink Trash Company (the latter of which was acquired by GFL in 2019), Industries of Delaware, Waste Industries of Pennsylvania and County Waste of Pennsylvania (acquired by GFL in 2020).
“This is an exciting step forward in our company’s growth strategy as we extend our footprint into the Mid-Atlantic with a new platform for future growth,” said CEO John Casella in a statement. “We are focused on ensuring a successful integration of these operations, providing excellent service to our new customers and communities, and welcoming our new employees to our team.”
This marks the Vermont-based company’s largest purchase in years and the latest effort to grow beyond its existing Northeast footprint. Executives have previously said they see “significant” expansion opportunities in the mid-Atlantic. Casella also recently announced a pending transaction to acquire New York-based Twin Bridges Waste & Recycling for approximately $219 million.
The Casella transaction is the final step in a multi-deal divestiture plan executed by GFL in recent months to lower its debt leverage ratio. Other transactions include the sale of assets in Colorado and New Mexico to Republic Services in early June, and the sale of assets in Nashville, Tennessee, to WM in May.