Dive Brief:
- Hainesport Transportation Group, a vertically integrated company with C&D operations in the Northeast, has received a new investment to expand its operations. Tecum Capital led the minority recapitalization deal.
- HTG’s assets include the Creekside C&D landfill in Toledo, Ohio; a rail-served transfer station in New Jersey; roll-off services under the Champion Disposal brand in New Jersey and R&B Debris, described as an “asset-light waste logistics operation.”
- Tecum provided growth capital, subordinated debt and equity for the deal. Environmental Services Investors, led by industry veteran Dickson Suit co-invested with Tecum. Suit, formerly with Ironwood Capital, will now serve on HTG’s board. Comerica provided senior debt for the transaction.
Dive Insight:
New Jersey-based HTG, founded in 2004, is “strongly positioned” across multiple states, according to the news release. HTG runs an estimated 130 rail cars between its transfer station and the Ohio landfill, according to Suit, showing the increasing focus on rail transfer in the Northeast as disposal capacity tightens.
“We have ambitious growth plans for HTG, and we are extremely fortunate to have capital partners who are in lockstep with HTG’s strategic vision. The synergies with other Tecum portfolio companies and Dickson’s relationships have already made a tremendous difference in facilitating our growth objectives,” said HTG CEO Darryl Caplan in a statement.
In a statement, Suit said that “Darryl and the HTG team have done an incredible job putting the chess pieces together to build the HTG platform,” and this puts the company “in an enviable position” going forward. Matt Harnett, a partner at Tecum, described the business as “extremely compelling” and said it “stands to benefit from organic growth opportunities with tight air space capacity in the Northeast.”
This marks Tecum’s fifth investment in the environmental services sector to date. Others include a 2022 investment in Georgia-based Arrow Waste.
This is the latest example of investment in a company with rail-served disposal assets in Ohio. A Macquarie Infrastructure Partners fund acquired Tunnel Hill Partners in 2019, which included rail-served landfill sites that are now part of the WIN Waste Innovations brand. In 2020, Interstate Waste Services also acquired a rail-served Ohio landfill with backing from Littlejohn & Co. Last month, Ares Management Corp. became an investor in IWS as part of a recapitalization deal.
