Date: April 5, 2012
Source: Casella Waste Systems, Inc.
A plan by Casella Waste Systems (Rutland, VT) to sell an unpopular waste-to-energy facility and buy a landfill in Maine stalled when state lawmakers postponed sending a bill to committee that would have authorized the transaction. The company will likely have to wait another year to sell its Maine Energy Recovery Facility (MERC) to the city of Biddeford, Maine for $7.5 million, along with its plan to buy the Juniper Ridge Landfill in Old Town from the state of Maine. The plan would have allowed the town to close the energy plant and given Casella an alternate destination for its waste. Casella already operates the state-owned Juniper Ridge Landfill. Officials with the town of Biddeford and Casella both say they will seek other ways to move forward. Casella has been exploring the sale of the facility since at least April 2009.
See also: "Casella Intends to Sell Maine Energy Recovery (MERC) Plant despite Local Opposition," (www.wasteinfo.com/news/wbj20090421I.htm), April 16, 2009.
PRESS RELEASE
April 05, 2012
Casella Waste Systems Confirms Discussions Regarding Maine Energy Recovery Facility
Casella Waste Systems, Inc. (NASDAQ: CWST), a regional vertically-integrated solid waste, recycling and resource management services company, confirmed today that it is in continuing discussions with the City of Biddeford and the State of Maine regarding its Maine Energy Recovery Facility. As Casella has previously disclosed, the Company has been exploring a possible sale of the MERC facility for some time. As was reported today, the Company has entered into a non-binding letter of understanding with the City of Biddeford for the possible sale of the facility to Biddeford. The terms of that potential transaction include a cash component of $7.5 million dollars, expected to be paid over time. This cash component is only one part of an overall proposal, which would include Casella's acquisition of the Juniper Ridge Landfill from the State of Maine. Any transaction will be based on a determination by the Company that the overall transaction represents fair market value for the MERC facility. There can be no assurances that the parties will ultimately reach an agreement with respect to these matters. The Company does not intend to make further statements regarding the potential transaction unless and until a definitive agreement is reached.
About Casella Waste Systems, Inc.
Casella Waste Systems, Inc., headquartered in Rutland, Vermont, provides solid waste management services consisting of collection, transfer, disposal, and recycling services in the northeastern United States. For further information, investors should contact Ned Coletta, vice president of finance and investor relations at (802) 772-2239, and media should contact Joseph Fusco, vice president, at (802) 772-2247. The company's website is casella.com.
Investors:
Ned Coletta
Vice President of Finance and Investor Relations
(802) 772-2239
Media:
Joseph Fusco
Vice President
(802) 772-2247
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