Interstate Waste Services completes merger combining Action Environmental Group and Apex Environmental
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Interstate Waste Services completes merger combining Action Environmental Group and Apex Environmental

The combined company will operate under the Interstate Waste Services brand.

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January 22, 2020

Interstate Waste Services Inc. (IWS), Teaneck, New Jersey, and Littlejohn & Co. LLC, a private investment firm based in Greenwich, Connecticut, announced the merger of The Action Environmental Group Inc. and Apex Environmental Resources Holdings II LLC Jan. 22. The combined company will operate under the Interstate Waste Services brand. Littlejohn led the equity financing to facilitate the transaction.

IWS is the largest privately held, vertically integrated provider of solid waste collection, transfer, recycling and disposal services serving the greater New York City and northern New Jersey markets. IWS operates nearly 400 collection vehicles throughout the five boroughs of New York City; northern and central New Jersey; and Orange and Rockland County, New York. The company also operates a network of 22 transfer and transload facilities and a rail-served solid waste landfill in Amsterdam, Ohio.

“This transaction creates a tremendous platform for continued growth and will enable us to offer greater scale and services for our customers,” Michael DiBella, founder and CEO of IWS, says. “IWS' expansion and development over the past 20 years have been driven by our hardworking employees and the support of our key financial partners and business stakeholders. We welcome Apex management into the IWS family and are grateful for the support and partnership of Littlejohn, who shares our vision and recognizes the significant opportunities ahead as we continue to execute on our growth plans.”

Summer Street Capital Partners LLC, an original investor in IWS; Prophet Equity, the majority investor in Apex; and management are maintaining significant equity interests in the business. O-Corp Investments LLC participated in the equity financing alongside Littlejohn.

“The combination of IWS and Apex is highly strategic, creating a vertically integrated platform with significant growth potential. We are pleased to partner with the IWS management team and existing shareholders to support the merger and the company’s growth initiatives,” Brian Michaud, managing director at Littlejohn, says.

GSO Capital Partners, the credit investment arm of Blackstone, led the debt financing. Longtime IWS lending partners, Comerica Bank and Brightwood Capital, also participated in the debt financing.

Stifel acted as sole placement agent in connection with the equity and debt financing to support the transaction. Houlihan Lokey Inc. acted as Littlejohn’s financial advisor.