Star Services Group, Inc.entered into an agreement to be acquired by a subsidiary of Allied WasteIndustries. The transaction is valued at around $34 million, plus assumption ofStar Services long-term debt. The deal is slated to close June 30th.
Jack Casagrande, chairmanand CEO of Star Services, said: "We believe that this transaction is inthe best interest of all of our shareholders. It represents a premium to ourrecent historical trading price and we believe it is fair."
He added that one of thereasons for the decision to sell to Allied is that Star Services ran up againstproblems raising funds to grow its business.
Star Services Group, Inc. isan integrated solid waste services company that provides solid wastecollection, transfer, disposal and recycling services in the greater Miami,Fort Lauderdale and Palm Beach areas of Florida. Star Services currently ownsor operates 10 construction and demolition debris-processing facilities, twolake-fill operations and two waste collection and portable sanitationoperations. Star Services has more than 3,400 customers.
Casagrande feels that themove by Allied to acquire the businesses under Star Services is a goodopportunity for the large waste management firm to make a strong entry into theFlorida market. The company has a limited presence in the southern Floridamarket.
Casagrande will stay withthe company in the role of a consultant.