Leonard Green acquires Stella Environmental from Hidden Harbor

Leonard Green acquires Stella Environmental from Hidden Harbor

Stella is a provider of outsourced transfer station management services to the municipal solid waste industry.

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Hidden Harbor Capital Partners, Boca Raton, Florida, has announced the completed sale of Houston-based Stella Environmental Services, a leading provider of fully outsourced transfer station management services to the municipal solid waste industry, to affiliates of Leonard Green & Partners L.P. (LGP), Los Angeles, on April 22.

With over 65 transfer stations across nine states, Stella processes more than seven million tons per year. The company’s key services include managing fully outsources operations and waste loading at transfer stations, coordinating waste hauling from transfer stations to landfills and providing on-site landfill services. Customers served include integrated waste companies and municipalities.

Hidden Harbor acquired Stella in 2017 as a carve-out from Birmingham, Alabama-based Action Resources, and in partnership with the Stella team, made substantial investments to build a highly scalable organization and develop a "best-in-class platform" within the transfer station management industry. Over Hidden Harbor’s ownership period, Stella completed six add-on acquisitions and drove significant organic growth.

Piper Sandler & Co., Minneapolis, and Raymond James, St. Petersburg, Florida, acted as financial advisors, and McDermott Will & Emery, Chicago, acted as legal advisor to Stella and Hidden Harbor in connection with the sale. LGP’s legal advisor was Lathan & Watkins, New York, and financial advisor was Houlihan Lokey, Los Angeles. Ares, Los Angeles, provided financing for the transaction. Financial terms of the transaction were not disclosed.