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Prospect Partners Recapitalizes Waste Harmonics with Expedition Capital Partners

Prospect Partners, LLC announced the recapitalization of Waste Harmonics, LLC, in partnership with Chicago private equity firm Expedition Capital Partners, LLC. Based in Victor, New York, Waste Harmonics provides outsourced waste management services for North American companies. It’s now the eleventh platform company in Prospect Partners III, L.P.

Press Release

Prospect Partners, LLC, a leading private equity firm investing in smaller lower- middle-market companies, today announced the management-led recapitalization of Waste Harmonics, LLC, a leading provider of outsourced waste management services based in Victor, New York. Prospect Partners partnered with Chicago private equity investment firm Expedition Capital Partners, LLC, in the transaction.

Waste Harmonics, led by Michael Hess, President and CEO, offers an integrated outsourced waste management solution for North American companies with multiple locations spread across a wide geographic territory. Since 2001, Waste Harmonics has customized programs for businesses in a wide range of industries, cost-effectively consolidating all their waste-management needs, including pick-up, hauling, recycling, and sustainability. Waste Harmonics operates as a single point of contact, managing all invoicing and reporting, even providing analytical tools that measure waste volume, equipment usage, and waste service frequency needs. Since customers have many locations, the ability to understand efficiency for each one can result in significant annual savings. Waste Harmonics also provides rental waste equipment, like containers and compactors, as well as equipment installation and repair services, and temporary containers for construction waste.

“We are very excited to be partners with Mike and his exceptionally talented management team,” said Maneesh Chawla, a Principal of Prospect Partners. “Waste Harmonics’ success is due both to its savvy leaders and its genuine core focus on customer service. We look forward to supporting management’s many forward-thinking initiatives, and see significant opportunities for continued growth.”

Added Hess: “We are in the midst of a thrilling, fast-paced chapter of growth. We are excited to have Prospect Partners and Expedition Capital Partners, with their proven expertise further building niche companies like ours, as our private equity partners. Their support will help us achieve many of our expansion goals on the aggressive timeline we have established.”
Going forward, Waste Harmonics seeks to acquire other waste brokers and waste services providers.

Earlier this year, Waste Harmonics was recognized by the Rochester Business Journal as the seventh fastest- growing privately-held business in 2015 in the Rochester, N.Y., area in the publication’s annual Rochester Top 100 ranking.

Waste Harmonics becomes the 11th platform company in Prospect Partners III, L.P. Overall, since 1998, Prospect Partners has built 47 platforms by investing in more than 130 unique businesses.

Strong History with Outside Partners

Developing relationships with outside partners – including independent equity sponsors and veteran operating executives – has always played a key role in helping Prospect Partners build successful platform companies. More than one-third of the firm’s total portfolio – 18 of 47 platforms – has resulted from partnerships with seasoned outside specialists.

Expedition Capital Partners, which partners with experienced operators to acquire and grow businesses in the middle- and lower-middle markets, will play an active role in Waste Harmonics, in particular directing the company’s business development and acquisition strategy.

Said Michael Hendrie, Expedition Capital Partners’ Managing Director: “I am excited to work with Prospect Partners and such a strong management team. Waste Harmonics is built for growth, particularly through acquisition.”

About Prospect Partners

Prospect Partners is a leading private equity firm investing in smaller lower-middle-market companies, managing $470 million across three funds. A highly experienced and active investor, Prospect Partners focuses exclusively on management-led leveraged recapitalizations and acquisitions of niche market leaders with revenues typically under $75 million. Since 1998, Prospect Partners has completed more than 130 transactions, investing opportunistically nationwide in companies in widely diverse niche manufacturing, distribution, and specialty service markets.

About Expedition Capital Partners

Expedition Capital Partners (“ECP”) is a private equity investment firm focused on partnering with experienced operators to acquire and grow businesses in the middle and lower middle markets. ECP seeks to acquire or invest in private businesses that have demonstrated a history of positive cash flow where it can employ its operating partners in senior management roles to implement a specific growth thesis tailored to each situation.