Denali and Synagro swap assets

Baltimore-based Synagro Technologies Inc. and Denali Water Solutions LLC have agreed to exchange with each other's biosolids and organics processing operations in different regions of the country.

Per the arrangement, Synagro will acquire Denali’s municipal biosolids services business in California in exchange for Synagro’s industrial nonbiosolids organics assets in Arkansas and Missouri.

“This transaction enables both Synagro and Denali to unlock tremendous value and grow our respective footprints in key markets,” Synagro CEO Bob Preston says. “We remain committed to our industrial customers and believe this move will service them better while allowing us to focus on the sustainable growth of biosolids with municipal customers in the Ozarks.”

“We are pleased to have worked with Synagro on a mutually accretive transaction,” adds Todd Mathes CEO of Arkansas-based Denali. “While we remain committed to our municipal services in other markets, exiting the California biosolids market will allow us to prioritize our other organics activities in the state, such as food waste and used cooking oil recycling. Moreover, we are excited to further expand our capabilities in Arkansas and Missouri, where Denali has a strong legacy of service and sustainability.”

The companies predict the asset swap will spur an increase in compost capacity and the two firms’ ability to divert more biosolids, food and green waste to beneficial use and promoting the avoidance of landfill emissions.

“We recognize the important role we play in the circular economy, and by continuing to execute upon our mergers and acquisitions strategy we can further accelerate our contribution to divert biosolids from landfills,” says Ben Gilreath, vice president at Synagro.

Kansas City, Missouri-based Polsinelli PC served as external legal counsel for Synagro and Cleveland-based Baker & Hosteller LLP served as external counsel for Denali.

Denali operates organics processing facilities in several states, estimating it handles some 5.7 million tons of discarded materials annually.

Founded in 1986, Synagro works with more than 1,000 municipal, industrial water and wastewater and agricultural partners in North America, including via the operation of composting and fertilizer pellet plants.