Casella Waste Systems is set to acquire Royal Carting and its sister company, Welsh Sanitation. Both of these businesses, which operate in the Hudson Valley region of New York, offer waste services to both residential and commercial clients.
The deal is set to be finalized in the fourth quarter, pending regulatory approvals. Casella announced in a news release that the acquisition, which involves two solid waste collection operations and two transfer stations, is projected to generate annualized revenues of over $90 million.
Casella’s planned acquisition is designed to expand its services into neighboring markets in the middle and lower Hudson Valley regions of New York and western Connecticut. The acquisition will specifically target areas with a significant commercial collection service and high waste volumes, which can be gradually incorporated into Casella’s landfills.
According to CEO John Casella, Royal’s presence and well-established reputation for excellent customer service in the area present a valuable opportunity for organic growth for Casella.
Houlihan Lokey was responsible for providing advice to Royal during the sale.
Casella is set to welcome approximately 200 employees from Royal and Welsh as they join the team. The two companies also bring with them a fleet of over 100 vehicles, as stated on their website.
In a statement, Emil Panichi, chairman of Royal, expressed his confidence in Casella as the ideal company to carry on their legacy of environmentally responsible service. Panichi, who founded the business in 1955 with just one truck, expanded over the years to include drop-off service, recycling services, and commercial waste removal, as detailed on the company’s website. Royal acquired Welsh in 1991, further bolstering their presence in the industry.
Casella expressed their commitment to preserving the company’s strong legacy while also introducing new capabilities to meet the evolving needs of their customers.
Casella entered the Connecticut market in 2021 and has been steadily growing its presence in New York. The recent acquisition of Royal and Welsh is the latest addition to Casella’s expanding portfolio. This follows the company’s acquisition of Whitetail Disposal and LMR Disposal earlier this year, which is projected to generate more than $100 million in annual revenues and support its expansion efforts in the mid-Atlantic region.
Casella executives mentioned during their Q2 earnings call that they anticipate additional deals to materialize later this year or in early 2025.