CERF GP Corp., the general partner of Canadian Equipment Rental Fund Limited Partnership, announced that CERFLP has entered into a non-binding letter of intent to acquire assets comprising the entire waste disposal and recycling division of an Edmonton, Alberta-based company. The transaction is expected to be completed by the middle of this month.
CERFLP has created a wholly owned subsidiary called The Smart-Way Disposal Recycling Company Ltd. to hold the assets. Wayne Wadley of CERF GP Corp., states, "This acquisition is exciting for CERFLP in that we will be able to provide additional rental services to our existing customer base as well add new customers. The waste disposal business and particularly the recycling solutions that we will now be able to provide will have a growing significance as the homebuilders, industrial, commercial and infrastructure contractors, and renovators need to look for solutions to reduce the amount of waste deposited in landfill sites.
Currently, construction and demolition waste accounts for about 25 percent of the total amount of municipal solid waste sent to landfills in Alberta, however, only about 10 percent of these waste materials are currently being recycled. It is estimated that at least 80 percent of material currently sent to landfills in Alberta can be recovered.
To address this issue, regulations are being considered by Alberta Environment, under the Landmark Agreement, that propose that at least 50 percent of construction and demolition material be diverted from landfills to approved recycling facilities. The completion of the asset acquisition will allow CERFLP to offer additional services to our customers which will enable them to increase the ratio of materials to be recycled in anticipation of the pending regulations."