BURLINGTON, Ontario, Feb. 26 /CNW/ -- Waste Services, Inc. (Nasdaq: WSII)
today announced that it had signed a definitive agreement for the sale of its
Jacksonville, Florida area hauling and materials recycling operations and
construction and demolition debris landfill to Advanced Disposal Services,
Inc. for $57.5 million. The company will retain ownership of the Jacksonville
materials recycling and hauling facilities and lease them to the purchaser.
The transaction is subject to lender approvals and customary closing
conditions and is expected to close in early March. The company will use
$42.5 million of the proceeds to reduce its term loans and apply the remainder
to other operational needs.
David Sutherland-Yoest, Waste Services Chairman and Chief Executive
Officer, stated, "Our strategy in Florida is to operate as an integrated
service provider and, because of the location of the Jacksonville operations,
we are unable to economically internalize waste into the JED landfill. This
transaction reflects the intrinsic value of our operations and our ability to
rationalize those pieces that may not fit our long term strategy. Even though
the Jacksonville operation contributed seven million dollars in EBITDA last
year, completing this transaction will both strengthen the company's balance
sheet and finance more attractive opportunities that will increase volumes
into owned disposal facilities."
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: