Casella Waste Systems Inc. has bought waste and recycling hauler Blow Brothers for $20 million and stock.
The Rutland, Vt.-based Casella said in a news release that Blow Brothers is an Old Orchard Beach, Maine-based company that does business as Bestway Disposal Services and BBI Waste Industries. BBI provides solid waste collection and transfer services and liquid waste services in New Hampshire and Maine, with about $20 million in revenue. BBI operates out of seven locations.
In addition to the cash payment Casella acquired 625,000 shares of the company’s Class A common stock.
The acquisition gives Casella the opportunity to internalize additional waste and recyclables, and to consolidate operations, routes and transportation. "BBI's operations overlay well with our footprint in New Hampshire and Maine, and we expect the acquisition to drive incremental value from our existing operations and provide a growth platform in several new market areas," said Casella Waste CEO John Casella.
BBI collects and transfers about 105,000 tons of solid waste and recyclables.
Casella Waste expects to internalize about 80 percent of the material at its facilities and for BBI to generate about $4.9 million of adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in the second full 12 months of combined operations after the deal closes.