The CID Group Inc., one of the area’s largest waste management companies, has embarked on a systemwide expansion that includes the purchase of a bankrupt competitor’s assets.
In late September, CID acquired assets of J&I Disposal Inc., I&J Disposal of Western New York Inc. and Albion Disposal Inc.
The Hamburg company is negotiating with Nu Car Carriers Inc. to acquire 54 acres in West Seneca, where the waste hauler plans to consolidate office, truck repair, truck wash and truck storage operations.
“No garbage is being stored on the site,” Richard Penfold, CID chairman, said. CID operates a landfill in Chaffee.
Penfold said he will consolidate company operations in Hamburg and Newstead at the West Seneca site.
Penfold said the acquisition of the three disposal firms — forced into involuntary Chapter 11 bankruptcy proceedings in September — prompted him to start plans to purchase the Nu Car property.
“We got the firms on Sept. 27 and by Oct. 15 I had the land deal wrapped up,” he said. J&I was based on Main Street in Newstead. CID is temporarily operating from the Newstead site until the West Seneca deal closes.
The Nu Car property, which borders Route 400, neighbors a 600-acre parcel that is being marketed as an industrial park. The property includes an 11-bay truck repair station.
“It is a very central location for us,” said Tony Nosek, CID vice president and general counsel.
Detroit-based Nu Car uses the land for truck and car storage. Nu Car officials could not be reached to comment about plans after CID closes on the property.
“This will allow us to do all of our repairs and truck work at one site,” Nosek said.
Terms were not disclosed, but according to papers filed with the Erie County Industrial Development Agency, CID received a $3 million bond to help finance the transaction.
The agency’s papers indicated CID hopes to create 55 jobs in the next three years.
“What we are bringing to West Seneca is our reputation and good community track record that CID has established in Hamburg,” Nosek said.
CID has more than 100 trucks in its fleet, most of which will be stored in West Seneca.
The company, which started in 1974, has 87,000 residential customers, 5,000 business clients and 1,000 industrial customers.
With 1990 revenues of $38.11 million, CID ranked 21st among Business First’s 1991 Top 100 Private Companies. It employs 327 in the Buffalo and Rochester areas.
At the Sept. 27 bankruptcy auction, CID company paid $3.5 million for the assets of J&I Disposal and two related companies. J&I was forced into involuntary Chapter 11 this summer by Browning Ferris Industries Inc. The Houston waste-management giant wanted to purchase the three companies but negotiations broke down.
William Savino, J&I attorney and partner in Buffalo law firm Damon & Morey, said CID’s bid was $1.5 million higher than any other received at auction which was for J&I’s assets, such as customer accounts, trucks and equipment. Real property was not included and has not been sold, he said.