Waste Services acquires WCA Ft. Myers transfer station, a WCA collection
business operating in Southwest Florida and receives $23.7 million in
WCA acquires Waste Services' Texas assets
Waste Services to pay down debt
BURLINGTON, Ontario, June 29 /CNW/ -- Waste Services, Inc. (Nasdaq: WSII)
today announced that it has completed the simultaneous sale of its Texas
operations and the acquisition of a transfer station and hauling company near
Ft. Myers Florida with WCA Waste Corporation (Nasdaq: WCAA). Waste Services
also received $23.7 million in cash in the transaction and has agreed to pay
WCA a monthly amount of $125,000 for seven years in relation to the operation
of the transfer station. Both parties have provided non-compete agreements
for the respective market areas.
Waste Services intends to internalize all of the waste flow from the
collection operation and transfer station in to its SLD landfill.
Waste Services has used $20 million of the cash proceeds to retire debt.
The payments to WCA will be accounted for as new debt at the discounted
present value of approximately $8.0 million.
David Sutherland-Yoest, Chairman and Chief Executive Officer of Waste
Services, stated, "We are very pleased to have found another win-win situation
that allows us to monetize the company's Texas assets at maximum value to our
shareholders and obtain assets in Florida that meet our strategic goal of
increasing waste flow into our landfills. Our U.S. operations are now totally
focused in Florida where we will continue our efforts to increase market
density and improve margins and free cash flow through the vertical
integration of waste collection, transfer and disposal operations."
Waste Services, Inc., a Delaware corporation, is a multi-regional
integrated solid waste services company that provides collection, transfer,
disposal and recycling services in the United States and Canada. The
company's web site is http://www.wasteservicesinc.com. Information on the
company's web site does not form part of this press release.
For further information:
For further information: Edwin D. Johnson, Executive Vice President and
Chief Financial Officer of Waste Services, Inc., +1-561-237-3400 Web Site: