KALKASKA — GFL Environmental Inc. has agreed to buy American Waste’s solid and liquid waste businesses in Michigan and Pennsylvania. The transaction is expected to be completed in February 2020, a release stated.
American Waste, based in Kalkaska, was founded in 1971 as Northern A-1 by Edward Ascione Sr.
His sons, Michael and Edward Ascione, since have since grown American Waste and Northern A-1 into a provider of environmental solutions for a broad base of solid and liquid waste customers in northern Michigan and Pennsylvania.
Edward and Michael Ascione both will join GFL and will continue to manage the American Waste businesses, the release stated.
“Mike and I carefully chose to merge with GFL because of our similar lines of business, GFL’s down to earth senior management team and decentralized operations approach,” Edward Ascione said in the release.
GFL is based in Vaughan, Ontario. It is the fourth-largest diversified environmental services company in North America.
Its 11,000 employees in Canada and the U.S. serve more than 4 million households and 135,000 commercial and industrial customers.
The Federal Trade Commission on Jan. 2 granted an early termination notice to the mandatory merger waiting period. The notice states that Michael Ascione is transferring four entities to GFL: American Waste, Inc.; American Waste Arrow, Inc.; Wexford County Landfill, LLC and Wexford Water Technologies, LLC.
American Waste purchased the Wexford County Landfill in 2011.
A U.S. Securities Exchange Commission filing on Jan. 7 states that GFL entered into an agreement on Dec. 6 to purchase a Michigan company (which fits the description of American Waste) for $360 million in cash and $20 million in non-voting shares of GFL.
Industry news website WasteDive reports that Canada-based GFL entered the U.S. market in 2016 when it acquired Michigan-based Rizzo Environmental Services for a reported $400 million Canadian. GFL since has invested heavily in the U.S. and now operates in 23 states.
In 2018 it bought North Carolina-based Waste Industries for $2.8 billion. On Jan. 1, 2020, it acquired Virginia-based County Waste for $480 million.
American Waste’s website states it opened its recycling center in Traverse City in 2006, began operating its Traverse City single stream Material Recovery Facility in 2011, and opened its new corporate headquarters in Kalkaska in 2014.
In 2019, American Waste received a $474,000 grant from Michigan Department of Environment, Great Lakes & Energy to upgrade its MRF recycling equipment in Traverse City, the website states.