Date: November 13, 2010
Source: WIH Resource Group, Inc.
WIH Resource Group announced the availability of a landfill for sale that serves the Phoenix and Tucson, Arizona markets. The fully permitted RCRA Subtitle D Municipal Solid Waste (MSW) landfill sits on an 850 acre parcel surrounded by State and Federal lands, 450 acres of which are zoned and approved for landfill development. The landfill, which has been designed to maximize airspace, has a total capacity of 65 million tons which gives it an estimated 50 year useful life based on current volumes of 1,500 tons per day, giving it the potential to generate revenues in excess of $1.6 billion. The current landfill owners are interested in an outright sale of the landfill and will also consider equity investors.
PRESS RELEASE
Introduction
The purpose of this communication is to make you aware of an opportunity that currently exists in the solid waste industry. You are receiving this communication because we recognize you as a professional with a history of investing in the solid waste industry. If this has reached you in error, please accept our sincerest apologies.
For potential interested parties, our hope is that you will take the time to evaluate this unique opportunity and contact me for additional information if you are interested in learning more about it. WIH Resource Group, Inc. (WIH) has been retained by a Client to assist them in the sale of their fully permitted RCRA Subtitle D Municipal Solid Waste (MSW) landfill designed to serve the greater metropolitan Phoenix and Tucson Arizona markets.
This Executive Summary provides details about this attractive investment opportunity - the purchase of a fully entitled Solid Waste landfill disposal site. This landfill site has been designed and is fully permitted to serve the greater metropolitan Phoenix and Tucson, Arizona markets. This landfill sits on an 850 acre parcel, 450 acres of which are zoned and approved for landfill development. The entire site is surrounded by State and Federal lands eliminating future grow issues.
The landfill has been designed to maximize the available landfill air space and has a total solid waste capacity of 65,000,000 tons. Based on market estimated volumes, it is anticipated that the site possesses a 50 year useful life and has the potential to generate revenues in excess of $1.6 billion.
Regional Market Conditions
Despite the economic slowdown, now is believed to be an opportunistic time to enter the Phoenix and Tucson Arizona solid waste markets particularly where this landfill services the east valley of Maricopa and Pinal counties (location). Other east valley landfills have limited site life and will be closing in the next 4 to 8 years forcing current waste hauling companies to direct their waste stream across significant distances to west side landfills or southward towards Tucson, 80 or more miles of transportation cost (Pricing Power and Efficiency).
The landfill is permitted and located in Pinal County and can serve wastestreams from Maricopa, Pima and Pinal counties. This site enjoys the support of the local communities who voted overwhelmingly on its approval and who, by contractual obligation, will reap financial reward from its operation.
As of this writing, three cities in the east valley (within Maricopa and Pinal counties) contract with landfill operators for their disposal needs. These contracts are all nearing termination dates with the municipalities seeking long-term disposal agreements. Their combined daily volume is approximately 1,500 tons per day. In addition, we have available financial projections that detail the site's anticipated financial performance. The projections indicate that this site (with a 50 year useful life) can produce revenues in excess of $1.6 billion over that period and that is prior to any collections operation measurement.
ROI / ROCE
This opportunity provides a substantial return on investment (ROI), or return on Capital Employed (ROCE), excellent potential cash flow with several feasible and significantly profitable exit scenarios. Full pro forma and all financial information available with a fully executed confidently agreement.
While the current economic climate presents some challenges, it may be an excellent time to enter the greater Phoenix and Tucson Arizona solid waste market. As mentioned, several municipalities in the east valley of the Phoenix market are nearing the end of their contractually obligated volume agreements.
Investment Opportunity
The current landfill owners are interested in an outright sale of the landfill and will also consider equity investors.
If you are interested in this opportunity, please contact Bob Wallace to discuss the potential of this in greater detail. You may feel free to pass this information on to anyone in your network who you perceive might have interest in the opportunity. Thank you for your time and we hope to hear from you soon.
Mr. Wallace can be reached by phone at 480-241-9994 or by email at bwallace@wihresourcegroup.com.
Bob Wallace, Principal & VP of Client Solutions
WIH Resource Group, Inc.
Website: www.wihrg.com.
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