Kinderhook Industries said it has closed a $1 billion single-asset continuation vehicle transaction for Ecowaste Solutions, a newly formed waste services provider created through the combination of Live Oak Environmental and CARDS Recycling. The transaction provides optional liquidity for certain Kinderhook limited partners while securing more than $400 million of new equity capital to fund organic growth and an active pipeline of acquisitions.
The continuation vehicle is anchored by Kinderhook Fund 8 and includes participation from funds managed by Goldman Sachs Alternatives and Apollo S3, according to the firms. Kinderhook said the deal represents its largest environmental services investment to date and marks the firm’s ninth platform investment within its Solid Waste Management vertical.
Ecowaste is positioned as a vertically integrated waste management platform with both collection and post-collection operations across the Mid-South, a region Kinderhook characterized as benefiting from population growth and expanding commercial and industrial activity. The company will pursue Kinderhook’s value-creation strategy focused on organic growth initiatives, operational efficiencies and additional acquisitions, the firm said.
Ecowaste is headquartered in Dallas and operates across Alabama, Arkansas, Florida, Kansas, Louisiana, Mississippi, Missouri, Oklahoma and Texas. The company provides residential, commercial and industrial waste collection and disposal services to more than 400,000 customers, according to the announcement.
Kinderhook, founded in 2003, said it has raised more than $10 billion of committed capital and completed more than 500 investments and follow-on acquisitions. The firm focuses on middle-market opportunities across healthcare services, environmental and industrial services, and light manufacturing and automotive sectors.
Support: Jefferies served as financial advisor on the continuation vehicle transaction, and Stifel served as financial advisor and sole placement agent for the debt financing. Kirkland & Ellis served as legal advisor. Debt financing was provided by a syndicate led by Ares Capital with participation from MidCap Financial, Willow Tree and the Stifel Lending Program.
KEY QUOTES:
“We are proud to partner with Goldman Sachs Alternatives and Apollo S3. This is a very exciting transaction for Kinderhook and our investors and represents the largest environmental services investment in our firm’s history. We look forward to continuing our partnership with CEO Dustin Reynolds and the Ecowaste Management Team as they lead the next phase of growth.”
Rob Michalik, Managing Director, Kinderhook Industries
“Under Kinderhook’s ownership, Live Oak and CARDS both successfully executed on aggressive growth strategies, collectively completing more than 35 add-on acquisitions resulting in established industry positions. As a combined company, Ecowaste has meaningful scale, proven integration capabilities, and a deep pipeline of acquisition opportunities across its core markets.”
Cor Carruthers, Managing Director, Kinderhook Industries
“We are pleased to announce the Ecowaste brand and believe it marks an exciting next chapter for our business. The Company is built around a shared commitment to service, safety, and operational discipline. With Kinderhook’s continued backing and new growth capital, we are well positioned to expand our footprint, invest in our people and assets, and continue delivering high-quality service to our customers.”
Dustin Reynolds, Chief Executive Officer, Ecowaste Solutions
