(PRWEB) October 12, 2013
EnviroSolutions, Inc. (ESI) today announced that it has acquired the New Jersey-based waste-by-rail transload and intermodal facility operations of Environmental Logistics Services’ (ELS). The acquisition includes ELS’ interests in New Jersey Rail Carriers, LLC (NJRC) and New Jersey Transloading, LLC, the long-term operating lease of NJRC, rail cars and containers, additional operating equipment and customer contracts. The operations being acquired have total annualized revenues of approximately $40 million, making ESI one of the largest waste-by-rail companies in North America.
Eric Wallace, President and Chief Executive Officer, said, "Our acquisition of ELS’ waste by rail assets will significantly strengthen EnviroSolutions’ capabilities in the northeastern United States by diversifying our base of operations and adding to our capacity and geographic presence. It also provides us the opportunity to drive cost efficiencies through waste flow optimization and improve profitability through increased internalization of waste streams throughout our network. With concern growing over rising fuel costs, traffic congestion and hauling distances, and environmental impacts, ESI is poised to benefit from rail transportation’s positioning as the most cost effective and environmentally friendly long-term solution for transporting waste out of the New York/New Jersey marketplace.” Darren Rizzo, CEO of ELS, expressed his excitement about the ESI/ELS transaction, stating “the strength of the ESI management team coupled with their focus on customer service is the perfect fit to take the transloading facility to the next level.”
This deal marks EnviroSolutions’ first acquisition in the greater New York market since the purchase of its DART transfer operation in Newark in 2006. Wallace went on to say, “In the years since the DART acquisition, EnviroSolutions has streamlined our operations and used positive operating cash flow to pay down debt and position the business to take advantage of strategic acquisition opportunities”. Marc Bourhis, EnviroSolutions’ Chief Financial Officer, adds “the ELS transaction is anticipated to be accretive by early 2014 as the operations become fully integrated. Post closure, our capital structure and critical financial metrics all will remain strong, enabling us to continue to invest in our core operations and consider additional strategic growth opportunities.”
About EnviroSolutions, Inc.
EnviroSolutions, Inc. is an integrated solid waste services company that provides solid waste collection, transfer, disposal and recycling services throughout the Mid-Atlantic and Northeast U.S. The Company serves commercial and industrial customers from a network of operations in 10 states. EnviroSolutions, Inc. was founded in late 2003 and is headquartered in Manassas, Virginia. For more information, visit the EnviroSolutions, Inc. web site at http://www.esiwaste.com.