BFI Canada Income Fund (TSX: BFC.UN) has acquired the Ridge landfill near Chatham and has announced two important acquisitions and mergers.
In mid-December, BFI Canada purchased the Ridge landfill from Waste Management of Canada Corp. for approximately CDN $110 million. With an annual permitted capacity of 680,000 tonnes, the landfill allows BFI Canada to increase internalization of volumes, achieve greater vertical integration and further enhance its market presence in Ontario.
The Ridge landfill accepts IC&I waste and has an estimated operating life of 19 years. For 2003, BFI Canada estimates that the Ridge landfill generated revenue of approximately $17 million and EBITDA of approximately $12 million. (See cover story, Dec./Jan. 2004 edition.)
In November, BFI Canada and IESI Corporation jointly announced the execution of a $1.1 billion transaction agreement to combine the two companies, creating one of the largest non-hazardous solid waste management companies in North America.
“The combination with IESI achieves one of BFI Canada’s key strategic objectives of establishing a meaningful and profitable presence in the approximately U.S. $42 billion non-hazardous solid waste management industry in the United States,” said Keith Carrigan, BFI Canada president and CEO.
The other important acquisition was the non-hazardous solid waste and recycling collection business and transfer station of Complete Disposal Services Inc. (CDS) located in the Greater Toronto Area. The $29 million acquisition is expected to be 3 to 4 per cent accretive to BFI Canada Income Fund’s free cash flow available for distribution. CDS is one of the leading waste management companies in the GTA and owns and operates a 37,000 square foot transfer station and material recovery facility located in the City of Vaughan.
Contact Anne MacMicken, BFI Canada at 416-401-7729.