Casella Waste Systems has signed a definitive agreement to sell select non-integrated recycling assets to a new company formed by Pegasus Capital Advisors and Intersection for $130.4m.

The purchaser is financed by Pegasus Capital Advisors, MissionPoint Capital Partners, HarbourVest Partners and Ares Capital Corp.

Casella said that its business strategy remains focused on providing integrated solid waste, recycling, and resource transformation solutions to its customers throughout the Northeastern US.

The closing of the transaction is expected to be in the fourth quarter of fiscal year 2011, which is subject to customary closing conditions.

The assets to be sold as part of this transaction contributed $14m consolidated Adjusted EBITDA for the twelve months ended 31 October 2010.