Wheelabrator Technologies Inc., Portsmouth, New Hampshire, will acquire Tunnel Hill Partners, Stamford, Connecticut, and rebrand as WIN Waste Innovations in a strategic merger set to close March 25. With a projected $1 billion annual revenue run rate, the new brand is forecasted to become one of the largest private companies in the U.S. waste sector.
“Our goal has always been to bring together a group of the best-in-class operators and infrastructure to create a vertically integrated network of assets providing customers end-to-end service offerings,” said Wheelabrator in a statement provided to Waste Today. “…WIN Waste Innovations will be investing in people, assets, infrastructure, technology and processes to offer a curb-to-grid model that provides essential services that benefit our customers, communities and the planet.”
As reported by Moody’s, WIN Waste will issue a $1 billion seven-year term loan to fund a sponsor dividend of $629 million and repay $306 million of the existing debt of Tunnel Hill. The company will also have a $400 million five-year revolving credit facility, which is expected to be undrawn at transaction close.
The two companies, which had previously been acquired separately by Macquarie Infrastructure and Real Assets (MIRA) in early 2019, still remain under a private equity ownership.
“The resources of the new combined company will ensure we more seamlessly deliver reliable waste solutions for our customers. As part of the newly expanded company, we will be operating a dedicated customer service department designed to manage the needs of every customer, across the full range of services we provide,” said Wheelabrator. “Our customers will still benefit from the relationships they have established with individual company representatives; however, moving forward, every customer will also have access to a more comprehensive portfolio of best-in-class services.”
The recent acquisition follows Wheelabrator’s purchases of Massachusetts-based United Material Management (UMM); Londonderry, New Hampshire-based Charles George Companies; and Eliot, Maine-based Shipyard Waste Solutions last year. By bringing these companies together, Wheelabrator hopes to offer a wider range of services for its customers in a geographic region of strategic interest.
“Our objective is to provide exceptional waste management services to our customers. Strengthening our offerings in key market areas enables us to continually advance those efforts. These acquisitions position the company as a vertically integrated operator along the entire value chain,” the company said.
According to Wheelabrator President and CEO Bob Boucher, the new brand will be launched in late April, with the company rolling out a new logo, colors and tagline across the organization in the next few months.