Casella Waste Systems, Inc. Signs Agreement For Acquisition Of West Virginia-Based Mountain State Waste

Rhea-AI Summary

Casella Waste Systems (NASDAQ:CWST) has signed an agreement to acquire Mountain State Waste, a multi-state waste management company operating across West Virginia, Ohio, Pennsylvania, and Kentucky. The acquisition, expected to close in Q4 2025, will generate approximately $30 million in annualized revenues.

The strategic acquisition includes multiple hauling operations and a transfer station, providing Casella with geographic expansion into West Virginia's franchise markets. Mountain State Waste's founders Randie Lawson and J.P. Phillips built the company's reputation for reliable service and community engagement, with J.P. Phillips joining Casella to support future growth initiatives.

Positive

• Expected to generate $30 million in annualized revenues
• Strategic expansion into new franchise markets across West Virginia, Ohio, Pennsylvania, and Kentucky
• Acquisition includes valuable assets: multiple hauling operations and a transfer station
• Key management retention with J.P. Phillips joining Casella team

Negative

• Regulatory approvals still pending for deal closure
• Integration costs and challenges may impact short-term performance

Insights

Waste Management Industry Analyst

Casella's $30M Mountain State acquisition strategically expands into franchise markets, enhancing regional presence and growth potential.

Casella Waste Systems has signed an agreement to acquire Mountain State Waste, a strategic move that will expand its operational footprint into West Virginia and parts of Ohio, Pennsylvania, and Kentucky. This acquisition, expected to close in Q4 2025 pending regulatory approvals, will add $30 million in annualized revenue to Casella's operations.

The deal represents a calculated geographic expansion into franchise markets, which typically offer more stable customer relationships and predictable revenue streams than open markets. By acquiring Mountain State's multiple hauling operations and transfer station, Casella gains immediate infrastructure in a contiguous region without the capital expenditure and time investment of building these assets from scratch.

This transaction aligns perfectly with Casella's articulated strategy of disciplined growth through targeted acquisitions. The company has historically focused on acquiring well-established local operators with strong community ties rather than pursuing rapid expansion at any cost. Mountain State fits this profile with its established presence across four states and reputation for reliable service.

The retention of J.P. Phillips, one of Mountain State's founders, is particularly significant. This continuity in leadership should facilitate smoother integration while preserving valuable customer relationships and operational knowledge—critical factors that often determine acquisition success in the waste management industry where local relationships and market knowledge are paramount.

This move adds to Casella's growing regional waste management network, potentially creating operational synergies while opening opportunities for further expansion in these newly entered markets.

RUTLAND, Vt., July 14, 2025 (GLOBE NEWSWIRE) -- Casella Waste Systems, Inc. (Nasdaq: CWST), a regional solid waste, recycling, and resource management services company (the “Company”), today announced that it has signed an agreement for the acquisition of the assets of Mountain State Waste. The transaction is expected to close in the fourth quarter pending regulatory approvals.

Mountain State Waste provides residential, commercial, and industrial waste collection services across North Central and Southwestern West Virginia and parts of Ohio, Pennsylvania, and Kentucky. The acquisition includes multiple hauling operations and a transfer station, providing Casella with adjacent geographic expansion into the franchise markets of West Virginia and opening new areas for future growth. The acquired business is expected to generate approximately $30 million of annualized revenues.

“We are looking forward to welcoming the Mountain State Waste team and their customers to Casella,” said John W. Casella, Chairman and CEO of Casella. “This acquisition aligns well with our strategy of disciplined growth, expanding our geographic footprint into adjacent markets with attractive characteristics. Mountain State Waste has excelled operating in the franchise markets of West Virginia and has built a strong reputation for reliable service and community engagement, and we look forward to building on that legacy.”

“We would like to thank founders Randie Lawson and J.P. Phillips for building a successful company and are excited by J.P.’s decision to join the Casella team to help realize opportunities to further enhance service offerings, invest in infrastructure, and support the communities in the new markets we now serve,” Casella added.

About Casella Waste Systems, Inc.

Casella Waste Systems, Inc., headquartered in Rutland, Vermont, provides resource management expertise and services to residential, commercial, municipal, institutional and industrial customers, primarily in the areas of solid waste collection and disposal, transfer, recycling and organics services in the eastern United States.

Safe Harbor Statement

Certain matters discussed in this press release, including but not limited to, the statements regarding our intentions, beliefs or current expectations concerning, among other things, projections as to the anticipated benefits of this acquisition; and the anticipated impact of this acquisition on the Company’s business and future financial and operating results are "forward-looking statements". These forward-looking statements can generally be identified as such by the context of the statements, including words such as “believe,” “expect,” “anticipate,” “plan,” “may,” “would,” “intend,” “estimate,” “will,” “guidance” and other similar expressions, whether in the negative or affirmative. These forward-looking statements are based on current expectations, estimates, forecasts and projections about the industry and markets in which the Company operates and management’s beliefs and assumptions. The Company cannot guarantee that it actually will achieve the financial results, plans, intentions, expectations or guidance disclosed in the forward-looking statements made. Such forward-looking statements, and all phases of the Company’s operations, involve a number of risks and uncertainties, any one or more of which could cause actual results to differ materially from those described in its forward-looking statements.

Such risks and uncertainties include or relate to, among other things, the following: the transaction is subject to approval by the West Virginia Public Service Commission, the Company may not fully recognize the expected strategic and financial benefits from the acquisition due to an inability to recognize operational cost savings, market factors, landfill internalization benefits, or due to competitive, economic or other factors outside its control which may impact revenue and costs.

There are a number of other important risks and uncertainties that could cause the Company's actual results to differ materially from those indicated by such forward-looking statements. These additional risks and uncertainties include, without limitation, those detailed in Item 1A. “Risk Factors” in the Company's most recently filed Form 10-K, in Item 1A. “Risk Factors” in the Company’s most recently filed Form 10-Q and in other filings that the Company may make with the Securities and Exchange Commission in the future.

The Company undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.

Investors:
Brian J. Butler
Vice President of Investor Relations 
(802) 855-4070

Media:
Jeff Weld
Vice President of Communications
(802) 772-2234
http://www.casella.com

FAQ

What is the value of Mountain State Waste's annualized revenue for Casella (NASDAQ:CWST)?

The Mountain State Waste acquisition is expected to generate approximately $30 million in annualized revenues for Casella Waste Systems.

When will Casella Waste Systems (NASDAQ:CWST) close the Mountain State Waste acquisition?

The acquisition is expected to close in the fourth quarter of 2025, pending regulatory approvals.

What states does the Mountain State Waste acquisition cover for Casella (NASDAQ:CWST)?

The acquisition covers operations across North Central and Southwestern West Virginia, and parts of Ohio, Pennsylvania, and Kentucky.

What assets are included in Casella's (NASDAQ:CWST) Mountain State Waste acquisition?

The acquisition includes multiple hauling operations and a transfer station, providing waste collection services for residential, commercial, and industrial customers.

Who are the founders of Mountain State Waste being acquired by Casella (NASDAQ:CWST)?

The founders are Randie Lawson and J.P. Phillips, with J.P. Phillips joining the Casella team post-acquisition.