Casella to Sell Maine Energy Recovery Facility

Casella Waste Systems, Inc., Rutland, Vt., a solid waste, recycling and resource management services company, has signed a purchase an agreement to sell its Maine Energy Recovery facility (MERC) to the City of Biddeford, Maine.

At a special meeting on July 31, 2012 Biddeford's nine-member council voted to enter into the purchase and sale agreement for MERC; and the agreement was executed by Casella and Biddeford on Aug. 1, 2012. Under the deal, Biddeford will pay the company $6.65 million over 20 years, enter into a new 10 year waste-handling agreement and enter into a 10-year recycling collection agreement.

The sale of the facility is set to close by Nov. 15, 2012, with the closing contingent upon certain conditions for the buyer and the seller. The conditions include the company successfully receiving a final permit modification at its Juniper Ridge Landfill in Old Town, Maine, to accept municipal solid waste. Currently, Juniper Ridge Landfill may only accept MSW as a by-pass stream from waste-to-energy facilities.

"With the signing of this purchase and sale agreement I believe that we have reached a win-win outcome for both the company and the City of Biddeford," says John Casella, chairman and CEO of Casella Waste Systems. "Biddeford had approached us several times over the past 10 years to find a solution to shut down the 25-year old waste-to-energy facility to redevelop their downtown area. Given current low energy prices and our belief that a successful resource management strategy combines waste reduction, an effective recycling solution and waste disposal in a low-emission landfill, we have structured a transaction that is favorable for our shareholders, while helping the community to meet its long-term solid waste objectives through 10 year waste handling and Zero-Sort recycling contracts."