BWI (Pink Sheets:BDWT), Calgary, the area’s largest local roll-off waste hauling company, signed a letter of intent with one of the largest rural residential waste collection company in the Calgary area. In operation for over 12 years, the rural waste collection company has provided rural residential waste collection and small bin waste hauling to the Calgary area. The pending merger will increase BWI’s presence in the residential collection market and enable BWI to expand our roll off bin fleet and services.
Since incorporating in 2001, Budget Waste Inc. (BWI) (Pink Sheets:BDWT) has become the largest local roll off waste hauling company in the Calgary, Alberta, Canada area. After restructuring the company and implementing senior management changes, BWI has shown strong profitability enabling BWI to implement their strategic growth through acquisition strategy and organic growth. Current projections for 2005 are for BWI’s revenue to increase by 35% from 2004 (excluding acquisitions) and with forecasted revenue increasing an additional 50% by 2006.
The Alberta Industrial/Commercial hauling market size is estimated at $80 million annually, with an additional $320 million in residential and front load commercial. BWI’s strategic growth model, similar to strategies of other major waste hauling companies such as BFI and Waste Management, is to grow through acquisition into multi-national operations. Currently BWI provides services to a number of major construction companies and premium homebuilders who have been operating in the Calgary market for over 20 years. BWI is currently in various stages of negotiations with six waste hauling companies on potential mergers and acquisition opportunities. BWI anticipates agreements will be reached with these companies within months and it is anticipated that BWI will be a regional waste hauler with projected annual revenues in the millions.