Waste Systems enters market

Mass. company buys local operation that serves White House

Trash removal

July 07, 1999|By Liz Atwood | Liz Atwood,SUN STAFF

The men who haul away the president's trash might take away your garbage someday, too.

Moving to expand in the Baltimore-Washington market, Waste Systems International Inc. of Lexington, Mass., said yesterday that it has acquired Eastern Trans-Waste of Maryland Inc., a Prince George's County company that serves the White House and other federal buildings.

"This is a platform acquisition for us," said Bob Rivkin, Waste Systems' chief financial officer and executive vice president of acquisitions.

The price of the acquisition was not disclosed.

Company officials said they are attracted to the area because of its growing population and its proximity to landfills the company owns in Pennsylvania. They are hoping to make other acquisitions in the region, Rivkin said.

"It's got good market characteristics," Rivkin said.

The acquisition of Eastern Trans-Waste is expected to bring an additional $10 million a year to Waste Systems, which manages nonhazardous solid waste. Philip W. Strauss, Waste Systems' chairman, president and chief executive officer, said the transaction would increase the company's annual revenue to about $80 million.

In the deal, Waste Systems will acquire a 53,000-square-foot trash-transfer facility in Washington that is permitted to operate 24 hours a day without capacity restrictions.

"We are very optimistic that the Baltimore Washington, D.C., metro market will provide us with an exceptional opportunity to support future growth in the mid-Atlantic states," said Strauss.

In the Baltimore area, the company will compete with Allied Refuse, Waste Management of Baltimore and Allied BFI.

"It is a big enough market for all of of us," Rivkin said.

Because of increasing environmental regulations, more companies are merging to oversee collection, hauling and disposal of trash.

Waste Systems ranks among the top 10 trash haulers in the country, Rivkin said.

"The industry dynamics are great," he said.

Waste Systems has operations in central Pennsylvania, Vermont, New York, Massachusetts and New Hampshire and about 72,000 commercial, industrial and residential customers. The company has about 500 employees and more than 22.5 million cubic yards of capacity at Pennsylvania landfills.

Pub Date: 7/07/99

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