Capital Waste Services LLC and EcoSouth Services of Mobile LLC have acquired certain assets of Santek Waste Services. No financial terms were disclosed. Kirkland & Ellis served as legal counsel on the deal. Santek is a provider of solid waste management services. Both Capital Waste and EcoSouth are portfolio companies of Kinderhook Industries LLC.
New York, NY – Kinderhook Industries, LLC (“Kinderhook”) announced today the acquisition of certain assets of Santek Waste Services, LLC (“Santek”) by Capital Waste Services, LLC (“Capital Waste” or “CWS”) and EcoSouth Services of Mobile, LLC (“EcoSouth”). CWS and EcoSouth, portfolio companies of Kinderhook, have acquired these assets through Republic Services, Inc.’s required divestitures related to its acquisition of Santek. The acquisition represents Capital Waste’s fifth add-on acquisition, EcoSouth’s second add-on acquisition, and Kinderhook’s 55th environmental services transaction since inception.
“We are excited to add Santek’s capable staff of operators to the CWS team. We have been impressed with the employees throughout the organization and are excited to bring on new talent day one to support the expected ramp in the business. We expect to quickly grow in our new markets through investments in people and equipment as well as various acquisitions already identified throughout Tennessee and Georgia.” said Matt Parker, Chief Executive Officer of CWS.
“This acquisition provides EcoSouth the ability to grow into new geographies through well-established operational bases. The acquired commercial hauling routes in Birmingham, Alabama and Hattiesburg, Mississippi will serve as a base of recurring revenue with strong customer relationships. EcoSouth is excited to grow our team with the addition of the Birmingham and Hattiesburg staff.” said Jeff Claunch, Chief Executive Officer of EcoSouth.
“The assets being divested are unique in nature and present a one-of-a-kind opportunity for our companies. The acquired disposal assets at CWS establish vertical integration and provide CWS a competitive differentiator in the marketplace. The commercial routes at EcoSouth add immediate scale for two new hauling geographies. Growing this network and expanding EcoSouth’s collection presence is a key tenet of the Company’s growth thesis.” said Rob Michalik, Managing Director of Kinderhook.
Financing for the transaction was provided by Comerica Bank. Kirkland & Ellis served as legal counsel.
About Kinderhook Industries
Founded in 2003, Kinderhook Industries, LLC is a private investment firm that manages over $3.3 billion of committed capital. We have made in excess of 250 investments and follow-on acquisitions since inception. Kinderhook’s investment philosophy is predicated on matching unique, growth-oriented investment opportunities with exceptional financial expertise and our proprietary network of operating partners. Our focus is on middle market businesses with defensible niche market positioning in the healthcare services, environmental / business services, and automotive / light manufacturing sectors. We have a track record of successfully and consistently building industry leaders.
For more information, please visit https://www.kinderhook.com.