Dive Brief:
- Peoria Disposal Co. (PDC) acquired Midland Davis Corp’s Pekin recycling division, which includes an administrative office and processing facility with baling and sorting systems. The purchase, which was for an undisclosed amount, enables expansion of the existing platform of PDC’s affiliate Area Recycling.
- Midland Davis sold its Pekin division in response to the economic decline in the recycling niche, according to a news release. Area Recycling will hold onto the staff who currently operate the facility.
- PDC and Area Disposal Service Inc. serve residential, commercial and industrial customers in central Illinois and other Midwest regions. This latest acquisition follows the purchase of Groveland, IL-based Melton Trucking Service, which offers commercial container services for two Illinois municipalities and area businesses as well as recycling.
Dive Insight:
Many companies are rethinking their business model as the recycling industry continues to take a hit. Some have reached their financial limit and stopped investing, while others see opportunity emerging from the current state of the industry and are investing more.
Those like PDC, who are banking on an economic turnaround, are jumping on new opportunity to buy while the price is low, while also expanding their commodities platform.
"This acquisition makes our company a fully integrated service provider in the waste industry,” said PDC Vice President Matt Coulter. "Our family-owned business has had a long-term goal of becoming a recycling processor. The recycling industry as a whole is struggling right now. This is a strategic investment at the right time."
