UPDATE 1-Canada’s IESI-BFC buys U.S. waste assets

* Expands position in St. Louis, Mo. market

* Deal includes major solid waste landfill

* Agreement to sell methane gas from landfill
(In U.S. dollars unless noted)

OTTAWA, Dec 23 (BestGrowthStock) – Canadian waste management
company IESI-BFC Ltd (BIN.TO: )(BIN.N: ) said on Thursday it will
bolster its operations in St. Louis, Missouri, with a $159
million cash deal to buy waste collection, transfer and
landfill assets.

Toronto-based IESI-BFC, North America’s third-biggest solid
waste management company, said the transaction with
privately-held Fred Weber Inc makes it a “major operator” in
the St. Louis market.

The company said it has acquired Missouri’s largest
municipal solid waste landfill, by volume, which is expected to
last about 80 years.

It also purchased a municipal solid waste transfer station
and collection business, which will be integrated with existing
operations.

“The key theme for them is internalization: collecting
volume and then driving it through to the landfill. This is a
municipal landfill they acquired so that should help them and
them on the solid waste side,” Wedbush Securities analyst Al
Kaschalk said.

The deal also includes a third-party agreement to sell
methane gas produced from the landfill.

“That could actually reduce some of their costs if they’re
able to sell off part of the stream of the gas that’s being
collected,” Kaschalk said.

IESI-BFC said it will increase its credit facility by
$127.5 million in connection with the deal.

This summer, the company completed its acquisition of rival
Canadian trash hauler Waste Services Inc, in an all-stock deal
Kaschalk said was worth about $770 million.

Analysts expect IESI-BFC to continue growing through
mergers and acquisitions and expand its U.S. presence.

IESI-BFC shares were 8 Canadian cents higher at C$23.96 on
the Toronto Stock Exchange after the deal was announced. The
stock has gained about 40 percent in the past year.
($1=$1.008 Canadian)
(Reporting by Susan Taylor; editing by Janet Guttsman)

UPDATE 1-Canada’s IESI-BFC buys U.S. waste assets