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RUTLAND, Vt. - Casella Waste Systems, Inc. (NASDAQ:CWST), a $7 billion market cap waste management company with robust financials including a healthy current ratio of 1.96, announced Monday it has signed an agreement to acquire the assets of Mountain State Waste, a transaction expected to close in the fourth quarter of 2025 pending regulatory approvals.
The acquisition will provide Casella with geographic expansion into franchise markets across West Virginia and parts of Ohio, Pennsylvania, and Kentucky. Mountain State Waste offers residential, commercial, and industrial waste collection services, with multiple hauling operations and a transfer station included in the deal.
According to the company’s press release, the acquired business is expected to generate approximately $30 million in annualized revenues.
"This acquisition aligns well with our strategy of disciplined growth, expanding our geographic footprint into adjacent markets with attractive characteristics," said John W. Casella, Chairman and CEO of Casella Waste Systems.
The company noted that Mountain State Waste founder J.P. Phillips will join the Casella team following the acquisition.
The transaction requires approval from the West Virginia Public Service Commission before completion.
Casella Waste Systems, headquartered in Rutland, Vermont, provides solid waste collection and disposal, transfer, recycling, and organics services to various customers in the eastern United States.
In other recent news, Casella Waste Systems reported robust financial results for the first quarter of 2025, with earnings per share of $0.19, significantly exceeding the forecast of $0.03. The company’s revenue reached $417.1 million, surpassing expectations of $404.02 million, marking a 22.3% increase year-over-year. Jefferies updated its outlook on Casella Waste Systems, raising the price target from $113.00 to $118.00 and maintaining a Hold rating, following a strong earnings report where revenue and EBITDA exceeded consensus estimates by approximately 3%. Analysts at Jefferies noted the company’s effective pricing strategies and growth through mergers and acquisitions, despite lower-than-expected volumes.
TD Cowen also raised the price target for Casella Waste Systems to $135 from $130 while maintaining a Buy rating, highlighting the company’s potential for growth through mergers and acquisitions. Analysts at TD Cowen suggested that Casella Waste Systems’ 2025 estimates might be conservative, expecting an increase in full-year guidance. Additionally, Casella Waste Systems held its annual stockholders meeting, where three Class I directors were elected to serve until the 2028 annual meeting. The stockholders also approved the appointment of RSM US LLP as the company’s independent auditors for the fiscal year ending December 31, 2025. These developments reflect a positive outlook for Casella Waste Systems, with analysts expressing confidence in its growth strategies and financial performance.
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