Casella Waste Systems will acquire Royal Carting and its sister company Welsh Sanitation, two family-owned businesses that provide residential and commercial waste services in New York’s Hudson Valley region.
The deal is expected to close in the fourth quarter, pending regulatory approvals. The acquisition, which includes two solid waste collection operations and two transfer stations, is expected to generate over $90 million in annualized revenues, Casella said in a news release.
The planned acquisition aims to extend Casella’s services into adjacent markets in New York’s middle and lower Hudson Valley regions and in western Connecticut. It will include “a high concentration of commercial collection service and waste volumes that can be internalized into Casella’s landfills over time,” according to the release.
Royal’s footprint, along with its longstanding reputation for good customer service in the region, offers “a great organic growth opportunity for Casella,” said CEO John Casella.
Houlihan Lokey advised Royal on the sale.
Royal and Welsh have an estimated 200 employees that are expected to join the Casella team. The companies also have more than 100 vehicles, according to the company website.
“We picked Casella as the best company to continue our 70-year tradition of environmentally responsible service to families and businesses in our community,” said Emil Panichi, Royal’s chairman, in a statement. Panichi started the business in 1955 with one truck and expanded over the years to add drop-off service, recycling services and commercial waste removal, according to the company’s website. Royal bought Welsh in 1991.
“We are dedicated to upholding this strong legacy while also introducing additional capabilities to support customer service needs,” Casella said.
Casella expanded into Connecticut back in 2021 and has also been expanding in New York in recent years. The Royal and Welsh deal is Casella’s latest announced deal since acquiring Whitetail Disposal and LMR Disposal this summer, which it expects to generate over $100 million of total annualized revenues and help expand its operations in the mid-Atlantic region.
During its Q2 earnings call, Casella executives noted the company expects more deals to come later this year or in early 2025.
