Mergers & acquisitions

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February 7, 2020

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GFL to acquire American Waste

GFL Environmental Inc., Ontario, Canada, and American Waste, Kalkaska, Michigan, announced Jan. 10 that they have entered into a definitive agreement for the acquisition by GFL of American Waste's solid and liquid waste businesses in Michigan and Pennsylvania. The closing of the transaction is subject to customary regulatory approvals and is expected to be completed in February.

According to The Star, the deal is for $380 million—$360 million in cash and $20 million in non-voting shares.

Founded in 1971 as Northern A-1 by Edward Ascione Sr., Edward’s sons Michael and Edward Ascione have since grown American Waste and Northern A-1 to be a leading vertically integrated provider of environmental solutions for a broad base of solid and liquid waste customers. Michael and Edward Ascione will be joining GFL following the acquisition and will continue to manage the American Waste businesses.

“The strong family and entrepreneurial values that have been the key to American Waste's success align with GFL's core values and strategy,” Patrick Dovigi, founder and CEO of GFL, says. “American Waste and Northern A-1 have a committed, passionate employee base that brings the same level of commitment to service excellence for our customers as do GFL's employees. We are confident that this common commitment will make the integration of our service offerings seamless and allow us to continue to grow, to serve our customers and to provide opportunities for our employees. We are excited to have Mike and Eddie and all of the employees of American Waste and Northern A-1 join the GFL team.”

“Mike and I carefully chose to merge with GFL because of our similar lines of business, GFL's down-to-earth senior management team and decentralized operations approach,” Eddie Ascione says. “We are confident that the strategic fit with GFL represents a great opportunity for our company and our employees to accelerate to the next chapter of growth, while maintaining the values we share with GFL reflecting our commitment to our employees, safety and our customers. We believe American and Northern A-1's expertise in serving both our solid and liquid waste customers is a great fit with GFL's focus on delivering comprehensive environmental solutions. Mike and I are excited to be able to continue to lead American Waste and Northern A-1 into the future with GFL."

Clairvest announces equity investment in DTG Recycle

Clairvest Group Inc., Toronto, announced Jan. 20 that it, together with Clairvest Equity Partners V (CEP V), led a $32 million minority growth equity financing in DTG Recycle, Mill Creek, Washington, in partnership with existing shareholders. Clairvest Group Inc.’s portion of the investment in DTG is $8.7 million.

DTG is a waste hauling and recycling company with operations concentrated in the greater Seattle-Tacoma area of Washington. The company focuses on the collection, recycling and beneficial reuse of material from commercial, construction and industrial customers. Clairvest is partnering with Dan Guimont, the company’s founder and president, and Tom Vaughn, CEO, to continue DTG’s expansion.

This investment builds on Clairvest’s 14-year investment track record in the environmental services industry.

“We are excited to back the talented management team at DTG. We have been impressed by the company’s commanding market position and its ability to deliver innovative and sustainable waste solutions to customers. We look forward to supporting Dan, Tom and the team to advance DTG’s ambitious growth plan. We are confident DTG will become a leading integrated waste management and recycling company in the Pacific Northwest,” Adrian Pasricha, partner at Clairvest Group, says.

“Clairvest’s partnership-focused investment style is the right fit for me and my team. DTG is about to embark on our next bold chapter of growth, and we are excited to have the support of investors with deep experience in building great companies. Clairvest’s understanding of our business and the environmental services industry makes them a great addition to our team as we further enable our clients to meet their sustainability goals by expanding into new service lines, such as the commercialization of products from recycled materials,” Guimont says.

DTG is Clairvest’s 55th platform investment and the 11th investment by CEP V. The Clairvest/CEP V co-investment pool is capitalized at $600 million and focuses on equity investments in growth companies.

Meridian Waste finalizes acquisition of the Shotwell Companies

Meridian Waste, an integrated, non-hazardous solid waste services company based in Charlotte, North Carolina, announced Jan. 10 that it has closed on the purchase of the equity interests of Shotwell Landfill Inc., Shotwell Transfer Station II Inc., Capitol Waste Transfer LLC, Capital Recycling LLC and the Morrisville Transfer Station LLC. Collectively, these assets operate under the banner of the Shotwell Companies throughout the greater Raleigh, North Carolina marketplace. The terms of the stock purchase agreement remain private. According to the company, this marks Meridian Waste’s first acquisition within North Carolina and the 11th acquisition since the company transitioned to private stock under the ownership of Warren Equity Partners (WEP) in April 2018.

The acquisition includes Shotwell’s construction and demolition (C&D) landfill and C&D transfer stations with the purchase of the Shotwell Transfer Station II Capitol Waste Transfer Station. Additionally, the purchase includes the Morrisville Transfer Station, which is a municipal solid waste (MSW) transfer station that is currently under construction. The purchase will also include disposal and commercial contracts associated with the disposal facilities as well as hauling assets.

“The Shotwell acquisition establishes Meridian Waste as an immediate, fully integrated solid waste competitor in a dynamic southeastern marketplace,” Walter “Wally” Hall, CEO of Meridian Waste, says. “We have a strong book of business with the group of hauling and disposal assets purchased, which will serve as a springboard to additional growth and expansion within the Carolinas.