Macquarie Asset Management (MAM) has acquired a solid-waste and recycling business in the US.
MAM said its latest Americas infrastructure fund has completed the recapitalisation of Coastal Waste & Recycling, without disclosing financial terms or the fund involved.
According to sources, Macquarie Infrastructure Partners VI (MIP VI) has become the owner after taking a significant majority stake in Coastal, a waste management company with an enterprise value of around $900m (€834m).
A small number of Coastal’s shareholders will retain minority stakes in the company alongside MIP VI.
Headquartered in Boca Raton, Florida, Coastal operates solid-waste and recycling facilities at 19 locations in Florida and Georgia. The company was formed in 2017 via a partnership between current Coastal CEO Brendon Pantano, Summer Street Capital and Concentric Equity Partners.
MAM said its investment will help Coastal accelerate its growth plan and strengthen its “position as a leading privately held vertically integrated solid waste and recycling business in the Southeast”.
Karl Kuchel, CEO of Macquarie Infrastructure Partners, said: “Coastal’s leadership in solid-waste collections and recycling and focus on a diversion-led business model with high-quality service positions the company well to meet the waste-management and sustainability expectations of the communities in which Coastal operates.
“We look forward to partnering with the Coastal management team to support the next stage of the company’s growth.”
MAM funds have invested over $5bn of equity in the waste industry in the Americas since 2007, including realised investments in Waste Industries, WCA Waste, and GFL Environmental, and current investments in WIN Waste Innovations, Solví Participações, LRS, GWZ and DTG Recycle.
Pantano said that, due to MAM’s experience in waste management and its commitment to providing ongoing capital and specialised support to management teams, “we will be able to accelerate our growth in Florida as well as into adjacent geographies”.
Pantano added: “This partnership will help us invest in needed waste infrastructure and position Coastal to further expand its waste and recycling services to more communities.”
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