Dive Brief:
- Waste Industries announced the execution of a binding stock purchase agreement for undisclosed terms that will see a newly-formed investor group take control of the company from Macquarie Infrastructure Partners (MIP), according to a press release.
- Ven Poole will remain as chairman and CEO of the company, with no changes planned for operations. The release says this deal will "enable Waste Industries to continue its focus on growth and best-in-class performance."
- The new investor group includes the Poole family, other senior management, and funds controlled by venture capital firms HPS Investment Partners and Equity Group Investments. The latter group was founded by billionaire Sam Zell, known for his investments in a range of sectors including waste, as reported by the Triangle Business Journal.
Dive Insight:
The North Carolina-based Waste Industries was co-founded by Poole's father in 1970 and announced its initial public offering in 1997. In 2008, the company teamed up with MIP and Goldman Sachs to go private once again. More recently, it completed a $975 million refinancing in 2015 that freed up $260 million for acquisitions.
Today, the company generates more than $615 million in annual revenue and employs more than 2,500 people across operations in North Carolina, South Carolina, Georgia, Tennessee, Virginia, Maryland and Delaware. Like many of its competitors, Waste Industries has invested heavily in compressed natural gas vehicles. The company recently partnered with data firm Actifio to upgrade its systems for better compatibility with the "Internet of Things" trend. Waste Industries has also put its own spin on community engagement by allowing customers to select how they'd like to see charitable donations spent through the Full Circle Project.
Waste Industries may keep a lower profile than some of its publicly traded peers, but this latest move shows that the company remains interested in an expanded footprint — and serves as an example of how companies under private ownership can achieve growth.
