Dive Brief:
- Private equity-backed Interstate Waste Services has acquired Marangi Disposal, it announced Monday. Marangi, based in Middletown, New York, serves commercial, residential, municipal and industrial customers in Orange and Rockland counties.
- The deal nearly doubles IWS' presence in upstate New York, according to a release. Marangi has more than 50 collection vehicles that serve about 40 routes.
- This is the latest in a series of deals IWS has made in the region, including its acquisition of Connecticut-based Oak Ridge Waste & Recycling earlier this year. IWS says it is the largest privately held company in its markets, which also includes New York City and parts of New Jersey.
Dive Insight:
IWS has made moves to expand its reach since a recapitalization last year. That deal netted the company syndicated term loan financing led by the private equity group of Ares Management and existing investor Littlejohn & Co. that has allowed IWS to execute its growth plans.
The company has grown considerably since it was founded in the 1990s in Rockland County. Today, it owns a fleet with more than 600 collection vehicles. It recently emerged as a winner of 14 zones in New York City’s new commercial waste zone system through its subsidiary Action Environmental Services. That total was the most zones awarded to any individual hauler.
Mike DiBella, CEO of IWS, characterized the company’s acquisition of Marangi Disposal as a natural progression of the two companies’ relationship. Marangi has been a customer of IWS for 25 years, according to the release.
“We're thrilled to welcome the Marangi team and customers to the IWS family," DiBella said in a statement. "As someone who's grown up in the waste industry through a local family business, I have great respect for the Marangi family and their legacy.”
Marangin has been operating since 1955. Existing Marangi employees will continue to serve their routes under the IWS name, according to a spokesperson. Mike Marangi, CEO of the acquired company, will stay on as an executive.
“We are excited to merge our operations with IWS and expand the service offerings we provide to our customers and communities," Marangi said. "With a 25-year professional relationship rooted in shared family values and a commitment to excellence, this partnership is a natural fit."
In addition to its hauling assets, IWS has also been expanding its disposal capacity. Its $30 million recycling facility in North Arlington, New Jersey, is slated to open this year. IWS also recently completed work on a rail offloading facility at its Apex Landfill in Ohio. It operates more than two dozen facilities today, including multiple MRFs and transfer stations.
This is the latest in a series of deals in the New York region this summer. Previously, WM acquired Winters Bros. in July and Terramont Infrastructure Partners acquired a “significant equity investment” in Long Island Waste Services.
