Casella Waste Systems, Inc. a publicly traded, regional solid waste, recycling, and resource management company, is buying collection, transfer, and recycling operations in Pennsylvania, Delaware, and Maryland from Canada-based GFL Environmental Inc. for $525 million. Casella is based in Rutland, VT.
The proposed acquisition includes nine hauling operations, one transfer station, and one material recovery facility with sales of about $185 million. The acquisition is expected to close by the third quarter of 2023, subject to customary closing conditions, including regulatory approvals.
GFL has been upgrading and repainting its fleet in its corporate neon green color. The Delaware operations have been “flipped” more than once, with GFL buying regional giant Waste Industries for $3..6 billion five years earlier. Waste Industries had earlier purchased a locally owned hauler, Independent Disposal.
The pending sale was one of three disclosed by GFL, which will receive about $1.5 billion.
“Today’s announcement marks an important step forward in the company’s growth strategy by using the strength of our balance sheet and proven capital discipline to make a compelling investment,” said John W. Casella, CEO of Casella Waste Systems, Inc. “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.”
“We look forward to welcoming the hardworking GFL employees to our team,” Casella said. “And, we look forward to the opportunity to provide excellent service to our new customers and the communities that GFL currently serves in these markets.”
Casella said GFI’s operations are highly profitable.
A large portion of New Castle County, DE, a major market under the deal, has residential customers choosing their hauler, with no regulations governing the pricing of service. Rates can vary by hundreds of dollars a year, depending on whether the homeowner shops for service or goes along with rate increases made with minimal disclosures.