Casella Waste announces acquisition of Blue Mountain
Rutland, VT— Casella Waste
Systems, Inc. announced the acquisition of Philadelphia-based
Blue Mountain Recycling, LLC. Blue Mountain Recycling, which has
single stream processing facilities in Philadelphia and Montgomeryville,
Pennsylvania, has an exclusive processing partnership with RecycleBank
LLC, an incentive-based recycling service that gives homeowners
credits for recycling which can be used with participating merchants.
As part of the agreement, RecycleBank
LLC has agreed to extend their processing agreement and strategic
relationship with Blue Mountain Recycling to Casella Waste Systems.
Casella Waste Systems believes
the transaction gives it a strategic opportunity to increase the
utilization of its network of recycling assets, as well as provide
a significant marketing advantage in providing services to municipalities
and developing solid waste management infrastructure through public/private
Casella Waste Systems purchased
the equity of Blue Mountain Recycling, LLC. The transaction included
$15 million in initial consideration; total consideration will
be based on the attainment of targeted levels of EBITDA and free
cash flows and the accomplishment of certain strategic initiatives
over the next few years.
For the remainder of Casella
Waste Systems’ fiscal year, Blue Mountain Recycling is projecting
EBITDA* of $1.7 million.
The acquisition and agreement
provides Casella Waste Systems with exclusive processing rights
to RecycleBank material anywhere in North America, as well as
Blue Mountain Recycling’s
current management team will be joining Casella Waste Systems
and will remain in place, with responsibility to operate and grow
that segment of the business, the company said.
The transaction was effective
September 19, 2005.