Meridian Waste Solutions Inc. has been awarded contracts for residential solid waste collection for Districts Four and Six by the County Council of St. Louis County, Mo., by unanimous vote at a meeting held on December 20, 2016.
These two contract awards expand Meridian Waste's hometown St. Louis marketplace footprint by adding approximately 20,300 residential customers to the company's existing customer roster of over 65,000 residential and commercial customers. The value of the combined contracts is expected to be in excess of $25 million over the five year term.
The company will begin collection services in Districts Four and Six on April 3, 2017, utilizing the company's new 2017 collection vehicles.
St. Louis County issued a competitive bid document to prospective service providers for two districts (Districts Four and Six) in August 2016 and Meridian Waste was determined to be the most responsible and lowest cost bidder. The collection services include weekly curbside collection of household garbage utilizing a hauler-provided 90 or 64 gallon cart, weekly curbside collection of recyclables utilizing the previously county-provided 35 or 64 gallon cart, monthly curbside collection of bulky waste and seasonal curbside collection of residential yard waste in April, July and October annually. Optional services, such as weekly yard waste, excess basic service, excess bulky waste, excess household garbage volumes, excess yard waste volumes, major appliance, Christmas tree, and minor renovation/emergency debris collection services, are also available to residential customers for additional published fees. Meridian Waste will share basic service guideline information as well as optional service guidelines and fees upon distribution of the new residential carts in Spring 2017.
"Receiving the contract award recommendation from staff and the official vote from the St. Louis County Council is a significant and meaningful statement of confidence in Meridian Waste's team members and our ability to perform quality collection services for the citizens of the County," stated Meridian CEO Jeff Cosman said in a statement. "We are already preparing for this transition with a multi-million dollar order of new collection vehicles and a hiring campaign to attract and employ the best drivers and mechanics. It is Meridian Waste's goal to provide our customers with the highest quality solid waste services and deliver a smooth transition come April 2017."
Meridian, a public company traded on over the counter markets. In a previous iteration, the company was known as the Brooklyn Cheesecake and Dessert Company, before its founder, Jeffery Cosman, made a move to establish a business in the solid waste space. In late 2014, a subsidiary, Brooklyn Cheesecake and Dessert Company officially became known as Meridian Waste Solutions in April 2015. Later that month, it closed on a $13.67 million, five-year first lien debt instrument to support future acquisitions. In December, it won a five-year hauling contract from the City Council of Webster Groves, Mo. It provides provide services to an estimated 7,500 residents and the arrangement is expected to generate an estimated $1.6 million in annual revenue for the firm.
In December 2015, the firm made another step by securing a $55 million credit facility from Goldman Sachs Specialty Lending Group. Simultaneous with the financing, it closed on the acquisitions of all of the membership interests of Winfield, Mo.-based Christian Disposal LLC and of certain assets of Eagle Ridge Landfill LLC related to hauling operations and a municipal solid waste landfill in Bowling Green, Mo.
Last spring, the firm appointed industry veteran Walter H. Hall (Wally) as a new director on the company’s board.