BioHiTech Global Inc (NASDAQ: BHTG) is likely to have an incredibly strong day in the market today after the company announced that it has teamed up with another service provider to help Temple University reduce disposal costs. Today, we’ll talk about:
- The news;
- why this is a big deal for BHTG;
- and what we’ll be watching for ahead.
BHTG Announces Partnership To Provide Bundled Services
As mentioned above, BioHiTech Global is likely to have an overwhelmingly strong day in the market today after the company announced a partnership. In a press release issued early this morning, the company announced that it has teamed up with a market leader in municpal, commercial, and industrial solid waste collection in the Philidelphia and Southern New Jersey Markets, known as Gold Medal Services, LLC. In the release, BHTG said that the team will work together to help Temple University reduce disposal costs while having a positive impact on the environment through new bundle services that are driven by the company’s technology.
The new bundled service offering combines Gold Medal’s traditional disposal services with BioHiTech’s food waste digesters and supply chain data analytics. The goal here is to help reduce waste generation for one all-inclusive monthly service charge. In the release, BHTG said that three waste digesters have been initially installed at the University and have the capacity to divert more than 3,000 pounds of waste from land fills on a daily basis. In a statement, Mike Schmidt, Executive Vice President at Gold Medal, had the following to offer:
We are excited to launch this new services bundle with BioHiTech and to have Temple University as our first customer under this new services plan… Many of our business customers of all sizes have expressed a desire to cost effectively reduce their impact on the environment and we are excited to now become a one-stop-shop to help achieve that objective. By providing a valued customer like Temple with the technology tools to divert waste from landfills and to reduce waste generation through improved supply chain management, we can help to lower their disposal costs without sacrificing our own profitability. That is a win for Temple, a win for us, and most of all, a win for the environment.
The above statement was followed up by John Johnson, AVP Service Operations of Temple University. Here’s what he had to offer:
Our University is committed to environmental responsibility and with Gold Medal’s unique sustainable services we can divert a substantial amount of waste from landfills and reduce our overall disposal costs at the same time. Gold Medal is also helping us take it one step further by providing BioHiTech’s data analytics to help make us smarter about what we are throwing away so that we can ultimately generate less waste which is good for the environment as well as our bottom line.
This Is Big News For BHTG
At the end of the day, this news is a massive point of validation for BioHiTech. With its technology being picked up by not only Temple University, but catching the eye of a leader like Gold Medal, this deal could propel the company’s growth. At the end of the day, companies like Waste Management, Inc. (NYSE: WM) and Advanced Disposal Services, Inc. (NYSE: ADSW) have made massive names for themselves in waste management by making innovative changes. That’s exactly what BHTG is aiming to do. In fact, I wouldn’t be surprised if the company catches the attention of these big players with their technology relatively soon!
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on BHTG. In particular, we’re interested in following the story surrounding the bundled services and how they impact Temple University. We’ll also be watching for further deals like this to come down the line as BHTG builds its position as a leader in the waste management space.
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