Kinderhook Industries LLC and BioHiTech Global Inc have acquired Gold Medal Services LLC, a New Jersey-based solid waste collection business. No financial terms were disclosed. Both Kinderhook and BioHiTech plan on transforming Gold Medal from a waste disposal company to a technology-driven sustainable waste services provider.
CHESTNUT RIDGE, N.Y., Jan. 30, 2018 /PRNewswire/ — BioHiTech Global, Inc. (“BioHiTech” or the “Company”) (OTCQB: BHTG), a green technology company that develops and deploys cost effective, innovative and disruptive waste management technologies, partners with Kinderhook Industries, LLC (“Kinderhook”), a private investment firm that manages over $2 billion of committed capital, to create a “next generation” environmental services platform company.
Through a series of transactions, the two companies completed the acquisition of Gold Medal Services, LLC, a market leader in municipal, commercial, and industrial solid waste collection in the Philadelphia and Southern New Jersey markets as a wholly owned subsidiary of Gold Medal Group, LLC (“Gold Medal”), a newly formed company majority owned by Kinderhook. BioHiTech acquired a 9.2% interest in Gold Medal in exchange for 500,000 shares of common stock. The Company also has an option to acquire an additional $5M interest in Gold Medal over the next 12 months. BioHiTech also entered into a management services agreement, with Gold Medal to provide executive oversight of its operations for fees of $750,000 per year, leveraging the significant experience and proven leadership skills of BioHiTech’s management team in the waste service industry. Together, the companies intend to lead a revolutionary transformation of Gold Medal from a traditional waste disposal company to a technology driven, vertically integrated, sustainable waste services provider.
“I am pleased to partner with Cor Carruthers, Rob Michalik, and the visionary private equity team at Kinderhook,” stated Frank E. Celli, Chief Executive Officer of BioHiTech Global. “Their extensive experience in environmental services and emerging technologies, coupled with their significant financial resources, make them a valuable partner for BioHiTech as we begin to utilize our proprietary technology to set a new standard for sustainable and cost-effective waste disposal in the United States.”
BioHiTech sees its investment in Gold Medal and ongoing management services agreement benefiting the Company in several key areas. Gold Medal’s footprint of over 6,000 commercial and industrial customer locations in Southern New Jersey and the Philadelphia marketplace, including numerous food waste generators, provides an attractive distribution platform for BioHiTech’s on-site Digesters while its municipal waste collection business can offer a significant source of future feedstock for the Company’s planned HEBioT facilities. Gold Medal also provides a platform, in one of the most attractive markets in the United States, for Kinderhook and BioHiTech to build a much larger vertically integrated waste services company through organic growth and opportunistic acquisition.
“We are excited to partner with Frank and BioHiTech as we look to increase our financial presence in this industry,” stated Corwynne Carruthers, Managing Director of Kinderhook Industries. “By marrying BioHiTech’s cost effective technology and management experience with Gold Medal’s business, we believe we have created a platform company with the opportunity to expand on our initial investment and create a best in class, sustainable environmental services company throughout the Mid-Atlantic States.”
For a more detailed description of the transaction, please review our current report on Form 8-K filed today with the Securities and Exchange Commission.
About Kinderhook Industries
Kinderhook Industries, LLC is a private investment firm that manages over $2.0 billion of committed capital. They have made in excess of 170 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. Their focus is on middle market businesses with defensible niche market positioning in the healthcare services, environmental / business services and automotive / light manufacturing sectors. They have a track record of successfully and consistently building industry leaders. In addition, Kinderhook is a licensed Small Business Investment Company (SBIC) with the U.S. Small Business Administration. For more information, please visit: www.kinderhook.com
About Gold Medal
Gold Medal Environmental, headquartered in Deptford, New Jersey, is a waste and recycling services company servicing Pennsylvania, New Jersey and Delaware. Gold Medal offers a complete range of integrated services to thousands of customers in the region. The company serves residential, institutional, commercial and industrial locations. Gold Medal offers superior collection, recycling, disposal and dumpster rental services 24 hours a day and seven days a week. For more information, please visit: www.goldmedal.net
About BioHiTech Global
BioHiTech Global, Inc. (OTCQB: BHTG), the “Company” headquartered in Chestnut Ridge NY, develops and deploys innovative and disruptive waste management technologies. The combined offerings of the Company offer our customers a full suite of technology based disposal options capable of having a significant impact on waste generation while providing a true zero landfill environment. With options for both on and off site biological treatment of waste, BioHiTech Global is a leader in zero waste solutions for businesses and municipalities. For more information, please visit www.biohitech.com.