Dive Brief:

• Keter Environmental Services, a third-party waste and recycling service provider, has signed an agreement to merge with Waste Harmonics, another technology-focused waste broker. Financial terms were not disclosed in the Friday announcement.
• Keter is a portfolio company of private equity firm TPG, which is leading the transaction with a “significant investment.” Arcapita, the private equity firm behind Waste Harmonics, will sell its full stake as part of the deal.
• The combined company will service an estimated 750 customers in nearly 70,000 locations. Keter CEO Kevin Dice will lead the company, with founder Steve Schlussel continuing in his role as president. Waste Harmonics founder and CEO Mike Hess will become executive chairman.

Dive Insight:

This deal is considered a sizable transaction for the waste broker market, which has seen some consolidation in recent years but also still has many smaller players offering various technologies or sustainability reporting solutions.

“This transaction comes at a time of considerable momentum for both Keter and Waste Harmonics and we are pleased to be joining forces to create a leading managed waste service provider,” said Dice in a statement. “Together, we will expand our offerings, enhance our sustainability reporting capabilities, and continue to utilize the best data and technology to provide exceptional service to our growing customer base.”

Connecticut-based Keter was acquired by TPG in 2021. Keter has since grown through multiple acquisitions, including the purchases of Link International and M-Pass Environmental. TPG’s portfolio also includes Denali Water Solutions, a fast-growing organics recycling and environmental solutions company.

New York-based Waste Harmonics was acquired by Arcapita in 2019, following prior investment from another private equity firm. Since then it has acquired companies such as Contelligent, Meridian Alliance Partners, New Market Waste Solutions and the Talismark Group. These deals expanded Waste Harmonics’ capabilities in terms of bin sensors, software and other features, which are considered complementary to Keter’s technology platform. Earlier this year, Hess told Waste Dive the company had exceeded its five-year growth plans and estimated it had quadrupled in size since the Arcapita investment.

“In the 20+ years since our founding, Waste Harmonics has established a customer-first culture based on long-term business relationships and delivering a truly customized approach to all of our clients,” said Hess in a statement. “That approach has been the catalyst for our growth and together, Keter and Waste Harmonics are well-positioned to benefit from evolving customer preferences, including the centralization of procurement, focus on service quality, and increased waste stream complexity.”

Other notable transactions in the waste broker space over the past year include RTS acquiring RecycleSmart (Canada’s largest broker), RoadRunner Recycling acquiring Compology and Rubicon going public via a special purpose acquisition company transaction.

This latest deal is targeted to close within 90 days, pending regulatory approval, according to Waste Harmonics Director of Marketing Jennifer Robinson. It is still being determined whether the combined company will assume the Keter name or take a different approach.

Correction: A previous version of this story misstated the specific structure of the business combination. The deal is a merger.