Date: August 31, 2007
Source: BFI Canada Income Fund
IESI Corporation, a Subsidiary of BFI Canada Income Fund, Announces Acquisition of Winters Bros. Waste Systems, Inc.
Conference Call To Be Held On Tuesday, September 4, 2007 At 8:30 AM (Eastern)
BFI Canada Income Fund (TSX:BFC.UN), today announced that its subsidiary, IESI Corporation ("IESI"), has acquired Winters Bros. Waste Systems, Inc. ("Winters Bros."), a leading integrated non-hazardous solid waste services provider based in Westbury, New York.
Winters Bros. provides collection, transfer and recycling services to commercial and industrial businesses, residences, municipalities, and construction sites, primarily in Long Island. It operates eight transfer stations and multiple collection operations.
"Winters Bros. represents an extremely strategic opportunity for our company," said Keith Carrigan, Vice Chairman and Chief Executive Officer of the Fund. "This accretive acquisition will allow us to more effectively utilize our existing assets in the northeast U.S. We believe Winters Bros. offers a platform which will operate with IESI's existing transfer and landfill assets to enhance our market-focused strategies within this region."
Mr. Carrigan continued, "The most effective means to finance the acquisition of Winters Bros. was through the use of our balance sheet. We have increased our U.S. revolving credit facility by $320 million, of which $281 million will be used to fund the acquisition including all related transaction costs, and $39 million will be available for future growth. As a result, we anticipate the Fund's leverage ratio will be approximately 2.8 times."
"Since its founding in 1998, Winters Bros. has quickly grown to become one of the two largest waste services providers on Long Island, a market that consists of more than three million people," said Mickey Flood, President of the Fund and President and Chief Executive Officer of IESI. "The management team and employees of Winters Bros. have achieved their success through strategic acquisitions coupled with significant organic growth. We are very pleased to combine the Winters Bros. assets and team with the IESI family."
Joe Winters, President and Chief Executive Officer of Winters Bros., said, "We look forward to growing together with IESI, a strategic and high-quality organization, while continuing to provide the reliable waste removal services our customers have come to expect."
The Fund will discuss the transaction in a conference call on Tuesday, September 4, 2007, at 8:30 AM (Eastern). Participants may listen to the call by dialling 416-644-3416 or 1-800-732-6179 at approximately 8:20 AM (Eastern). The call will also be webcast live at www.bficanada.com. For those unable to participate, a replay will be available after the call until September 18, 2007 at midnight. To access the replay, dial 416-640-1917 or 1-877-289-8525 and quote the reservation number 21245002#. The audio webcast will also be archived at www.bficanada.com.
A presentation to accompany the conference call will be available on the Fund's website.
This document may contain forward-looking statements relating to the Fund's operations or to the environment in which it operates, which are based on the Fund's operations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, or are beyond the Fund's control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. These factors include those set forth in the Fund's Annual Information Form for the year ended December 31, 2006. Consequently, readers should not rely on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made. Although the forward-looking statements contained herein are based upon what management believes to be reasonable assumptions, the Fund cannot assure unitholders that actual results will be consistent with these forward looking statements, and the Fund disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
About BFI Canada Income Fund
BFI Canada Income Fund (no relation to Browning-Ferris Industries, Inc.), through its subsidiaries, is one of North America's largest full-service waste management companies, providing non-hazardous solid waste collection and landfill disposal services for municipal, commercial, industrial and residential customers in five provinces and ten U.S. states. Its two brands, IESI and BFI Canada, are leaders in their respective markets and serve over 1.2 million customers with vertically integrated collection and disposal assets. The Fund's units are listed on the Toronto Stock Exchange under the symbol BFC.UN.
For more information, please contact:
Director, Investor Relations and Corporate Communications
BFI Canada Income Fund
(416) 741-4565 (FAX)