Synagro Announces Three Acquisitions

Synagro Technologies Inc. of Houston, TX announced today that it has closed the acquisitions of Rehbein Inc. and the biosolids operations of Whiteford Environmental Services. In addition, Synagro has entered into a stock purchase agreement to purchase all of the shares of Environmental Protection & Improvement Company Inc. (EPIC), a wholly owned subsidiary of Compost America Holding Company Inc.

Rehbein is located in Hugo, MN and has operations in Minnesota, Michigan and Wisconsin. Rehbein has been performing biosolids land application services for industrial and municipal generators since 1979 and is the largest private residuals services provider in the Minnesota area. Rehbein provides Synagro with a strategic geographic presence in the Midwest and brings a strong management team that will continue to operate the business. This acquisition will add approximately $5 million in annual revenues and is expected to accrete to Synagro's calendar year 2000 earnings per share. Other terms of this transaction were not disclosed.

The Whiteford operations are headquartered in Whiteford, MD and have provided specialty biosolids services for industrial and municipal generators in many states, including Maryland, Pennsylvania, Ohio, Virginia, Massachusetts, Florida and North Carolina. Whiteford presents Synagro with an opportunity to expand into the growing field of specialty biosolids services, including digester cleanings and dewatering. This will allow Synagro to leverage its existing customer base by offering additional services. The Whiteford management team has remained with Synagro and will manage this specialty group after the close. Whiteford has historically generated between $2 million and $3 million in annual revenues and is expected to accrete to Synagro's calendar year 2000 earnings per share. Other terms of this transaction were not disclosed.

EPIC is a waste transportation and management company headquartered in Denville, NJ that specializes in transporting biosolids by rail for disposal or land application for beneficial reuse. In addition, EPIC utilizes its rail fleet in transporting a variety of other waste streams, including incinerator ash and soils. EPIC currently operates a fleet of approximately 150 high-capacity railcars and 1,300 containers. A majority of EPIC's work is under long-term contract and represents approximately $170 million in contract work that has not been completed or billed. EPIC will add approximately $23 million in annual revenues and is expected to accrete to Synagro's calendar year 2000 earnings per share. (See related story.)

Synagro has operations located throughout the country. In addition to pursuing acquisitions in key markets, the company is positioning itself as the national provider of biosolids services to municipalities and wastewater privatization projects throughout North America.

Edited by Kate Goff