CWST Casella Waste Systems Inc

Waste Management Inc. (WM) recently announced the acquisition of Access Computer Products Inc., a leading provider of cell phone, ink and toner cartridge, and consumer electronics reverse logistics, remarketing, and recycling services, through its subsidiary WM Recycle America, L.L.C.

In addition, WM also acquired Mordell, LLC, Access’ re-commerce partner responsible for refurbishing and selling used computer equipment obtained through Access and other third party suppliers.

This acquisition will further strengthen Waste Management's position in North America as a leader in the recycling of e-waste, which is fast becoming a major waste stream. Waste Management is committed to providing solutions to its customers for managing electronic wastes and this acquisition will help Waste Management provide high value services to its customers.

With fast-changing technologies, electronic goods are becoming obsolete in quick time, thereby creating a strong need for electronic waste rmanagement. Twenty-six states in the US have already mandated e-waste recycling programs.

This acquiistion will help Waste Management to achieve its target of tripling the amount of material it recycles to 20 million tons by 2020. The terms of the deal were not disclosed.

Waste Management recently posted its fiscal 2011 second quarter results, recording an increase in profit to 54 cents per share (excluding special items) in the second quarter of the year from 51 cents per share in the year-ago quarter. With this, the company has missed the Zacks Consensus Estimate by a penny.

Revenues increased 6% to $3.35 billion from $3.16 billion in the year-ago quarter, driven by higher commodity prices, improving recycling volumes, and collection and disposal yield. It was higher than the Zacks Consensus Estimate of $3.32 billion. It currently maintains a Zacks #5 Rank (Strong Sell rating) on the stock.

Waste Management is the largest provider of comprehensive waste management services in North America. The company provides collection, transfer, recycling and resource recovery, as well as disposal services to nearly 20 million residential, commercial, industrial and municipal customers. It competes with Republic Services, Inc. (RSG) and Casella Waste Systems Inc. (CWST).

The company has a network of 390 collection operations, 345 transfer stations, 273 active landfill disposal sites, 16 waste-to-energy plants, 98 recycling plants and 119 beneficial-use landfill gas projects.

 
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