Kinderhook-backed Rizzo Environmental acquires Royal Oak Recycling

Kinderhook Industries-backed Rizzo Environmental Services has acquired V&M Corporation (Royal Oak Recycling), one of the largest independent recyclers of paper, plastic and metal materials in the Midwest. The deal represents the 15th environmental services transaction completed by Kinderhook.

Press Release

Rizzo Environmental Services, Inc., (“Rizzo” or the “Company”), a portfolio company of Kinderhook Industries, LLC (“Kinderhook”), announced today the acquisition of V&M Corporation (d/b/a “Royal Oak Recycling” referred to herein as “Royal Oak”). Royal Oak represents the 15th environmental services transaction completed by Kinderhook. Financial terms of the transaction were not disclosed.

Rizzo Environmental Services, Inc. is a Southeast Michigan market leader in the provision of curbside collection services for municipal solid waste as well as commercial collection services. Headquartered in Sterling Heights, Michigan, the Company provides curbside collection for municipal solid waste, recycling, and compost to municipalities throughout Southeast Michigan. The Company currently services 31 municipalities in three counties throughout Southeast Michigan.
Headquartered in Royal Oak, Michigan, Royal Oak Recycling is one of the largest independent recyclers of paper, plastic, and metal materials in the Midwest region. The Company’s service offerings include collection, sorting, and processing of paper, plastic, and metal materials.

Rob Michalik, Managing Director of Kinderhook Industries, said, “The acquisition of Royal Oak will launch Rizzo into the recycling market with significant scale. We look forward to partnering with the Royal Oak management team and getting the opportunity to leverage their recycling industry expertise to help Rizzo expand its service offerings in the recycling sector.”

“Since its founding, Royal Oak has maintained a reputation for delivering extraordinary customer service,” said Chuck Rizzo, Jr., CEO of Rizzo Environmental Services. “Royal Oak has been serving the Midwest region for over 75 years and we are excited to welcome the Royal Oak team to Rizzo.”

“Royal Oak’s longstanding customer relationships and exceptional management made this acquisition very attractive for Rizzo,” said Cor Carruthers, Managing Director at Kinderhook Industries. “The acquisition of Royal Oak enables Rizzo to further diversify its service offerings and thus control more of its collected waste stream.”

Financing for the transaction was provided by Comerica Bank. Kirkland & Ellis served as legal counsel to Kinderhook and Rizzo.

About Kinderhook Industries, LLC

Founded in 2003, Kinderhook Industries is a private equity firm with $770 million of committed capital and an investment philosophy based on combining senior management and operating experience in a variety of industries with the financial and investment know-how of private equity professionals. Kinderhook primarily makes control investments in companies with transaction values of $10-$75 million in which the firm can achieve significant financial, operational and growth improvements. The firm targets orphaned non-core subsidiaries of corporate parents, existing small capitalization public companies lacking institutional support and management-led recapitalizations of entrepreneur-owned companies. By providing access to capital, strategic advice and an extensive network of relationships, Kinderhook Industries has a history of successfully building privately held firms in partnership with management. For more information please visit: www.kinderhook.com

About Rizzo
Rizzo Environmental Services, Inc. is a Southeast Michigan market leader in the provision of curbside collection services for municipal solid waste as well as commercial collection services. Headquartered in Sterling Heights, Michigan, the Company provides curbside collection for municipal solid waste, recycling, and compost to municipalities throughout Southeast Michigan. The Company currently services 31 municipalities throughout three counties in Southeast Michigan. For more information on Rizzo, visit: www.rizzoservices.com