Canadian Equipment Rental Fund Limited Partnership, based in Edmonton, Alberta, last week said CERFLP signed a non-binding letter of intent to acquire the entire waste disposal and recycling division of an Edmonton-based company. The transaction is expected to be completed by mid-October 2009. CERF, which operates rental company 4-Way Equipment Rentals, created a wholly owned subsidiary called The Smart-Way Disposal Recycling Co. to hold the assets.
“This acquisition is exciting for CERFLP in that we will be able to provide additional rental services to our existing customer base as well as add new customers,” said Wayne Wadley, CEO of CERF. “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.”
CERFLP trades on the TSX Venture Exchange under the symbol CFL.UN.
The acquisition will be funded by a private placement of 166,670 limited partnership units of CERF.