Meridian Waste Solutions Inc. completed acquisition of The CFS Group LLC, The CFS Group Disposal & Recycling Services LLC and RWG5 LLC for an undisclosed price.
The CFS Group services more than 30,000 commercial, industrial and residential customers in the Richmond, Va., market area using frontload, roll off and automated side load vehicles, containers and other related equipment, two MSW landfills, one transfer station and one recycling facility all located within central Virginia.
Following the transaction, under Meridian Waste’s ownership, The CFS Group companies will continue to own and operate all of their existing waste collection and disposal assets with greater access to capital for growth and acquisitions. The transaction marks Meridian Waste’s first solid waste acquisition outside the state of Missouri and creates a vertically integrated market for the Company within the Commonwealth of Virginia.
In 2016, The CFS Group generated $25 million in revenues. Rob Guidry, a 27-year veteran of the solid waste industry, and all 109 CFS employees join the Meridian Waste family in this transaction and will continue operations in their respective locations. Guidry will continue in his role as president of The CFS Group, responsible for managing the business and operations of the companies.
“The stock transaction maintains the integrity of our entities while granting us access to greater capital to replace scheduled equipment and systems and invest in new opportunities for expansion. This event will be seamless in the eyes of our customers and stakeholders, as our entire team continues to strive to be the best in the solid waste industry,” Guidry said in a statement.
Following the acquisition, Meridian Waste services over 118,500 residential, commercial, industrial and governmental customers with an estimated annual run rate of $58 million in combined revenues. Meridian Waste financed the acquisition with $34.1 million of additional capital provided by current senior lenders and funds from a recently completed equity offering.
“Meridian Waste is on the forefront of an explosive period of growth, and I couldn’t be more pleased than to have The CFS Group and Rob Guidry lead our expansion into the Commonwealth of Virginia,” Meridian Waste CEO Jeff Cosman said in a statment. “This acquisition further defines our growth strategy of targeting and expanding within vertically integrated markets and serve as a platform for further growth. Our combined companies will continue the quality environmental services The CFS Group’s customers have come to expect, and we know that together we create a stronger company driven by men and women committed to a clean community and environmental excellence. We welcome our newest team members to Meridian Waste and are proud to continue their efforts in providing superior customer service under the Meridian Waste family of companies.”