Lone Star Disposal acquired by Waste Connections

Lone Star Disposal acquired by Waste Connections

Texas C&D materials and MSW service provider had been acquired by New York-based equity firm in 2019.

August 17, 2022

The New York office of investment bank Houlihan Lokey says it has played a role in the sale of Texas-based Lone Star Disposal from a New York-based equity fund to Waste Connections Inc., headquartered in Canada. Houlihan Lokey says the transaction closed Aug. 15.

Lone Star had been a portfolio company of J.F. Lehman & Co. (JFLCO) since being acquired by JFLCO in August 2019.

Houlihan Lokey describes Lone Star as a vertically integrated provider of construction and demolition (C&D) and municipal solid waste (MSW) disposal and related environmental services in the Houston market.

“Lone Star’s comprehensive service platform utilizes an asset base consisting of a C&D landfill, an MSW transfer station, a C&D recycling facility and a collection fleet,” the investment bank says. The Lone Star customer base includes regional and national C&D and MSW haulers and C&D contractors serving the Houston area, adds the firm.

Since acquiring Lone Star in 2019, Houlihan Lokey says JFLCO worked with management “to optimize Lone Star’s hauling and disposal operations and enhance the business development function, driving substantial revenue and earnings growth.”

Houlihan Lokey also says it served as financial advisor and assisted in marketing, structuring, and negotiating the transaction on behalf of Lone Star and JFLCO.

“This transaction highlights Houlihan Lokey’s preeminent position and continued success advising clients in the environmental services sector,” the investment bank says. Houlihan Lokey says it has advised on 20 announced environmental services transactions since January 2021.