Leonard Green acquires Stella Environmental Services from Hidden Harbor

Hidden Harbor Capital Partners has sold Stella Environmental Services to Leonard Green & Partners LP.

Hidden Harbor Capital Partners has sold Stella Environmental Services to Leonard Green & Partners LP. No financial terms were disclosed. Stella is a provider of outsourced transfer station management services to the municipal solid waste industry.

PRESS RELEASE

Houston, Texas, April 26, 2021 – Hidden Harbor Capital Partners (“Hidden Harbor”) is pleased to announce it completed the successful sale of Stella Environmental Services (“Stella”), a leading provider of fully outsourced transfer station management services to the municipal solid waste industry, to affiliates of Leonard Green & Partners L.P. (“LGP”) on April 22, 2021.
With over 65 transfer stations across 9 states, processing more than seven million annual tons per year, Stella offers a full-service, asset-light model that differentiates the company from competitors and allows it to deliver superior solutions for customers. Stella’s key services include managing fully outsourced operations and waste loading at transfer stations, coordinating waste hauling from transfer stations to landfills, and providing on-site landfill services. Customers served include integrated waste companies and municipalities.

Hidden Harbor acquired Stella in 2017 as a carve-out from Action Resources, and in partnership with the Stella team, made substantial investments to build a highly scalable organization and develop a best-in-class platform within the transfer station management industry. Over Hidden Harbor’s ownership period, Stella completed six add-on acquisitions and drove significant organic growth.

Piper Sandler & Company and Raymond James acted as financial advisors, and McDermott Will & Emery acted as legal advisor to Stella and Hidden Harbor in connection with the sale. LGP’s legal advisor was Latham & Watkins and financial advisor was Houlihan Lokey. Ares provided financing for the transaction. Financial terms of the transaction were not disclosed.

About Stella Environmental Holdings
Stella, based in Houston, TX, plays a crucial role in the processing and safe disposal of municipal solid waste. The Company provides outsourced transfer station management services, including the loading and transportation of waste from in-town processing facilities to remote landfills, to integrated waste companies and municipalities. Transfer stations are a vital part of the waste collection and disposal process, improving the efficiency of the overall waste stream and reducing capital requirements and operating costs for customers. http://stellaenv.com/

About Hidden Harbor Capital Partners
Hidden Harbor Capital Partners is a private equity firm with an operations soul and intense passion for building great companies. Hidden Harbor brings large-scale, private equity experience and resources to the lower middle market with a focus on value-oriented, operationally intense situations. Our principals are InvestorOperators® who bring both extensive transaction and operating experience to truly understand your business. As one team, we partner and work hand-in-hand with our portfolio companies to drive business successes. For more information, visit www.hh-cp.com.

About Leonard Green & Partners
Leonard Green & Partners, L.P. is a leading private equity investment firm founded in 1989 and based in Los Angeles. The firm partners with experienced management teams and often with founders to invest in market-leading companies. Since inception, LGP has invested in over 100 companies in the form of traditional buyouts, going-private transactions, recapitalizations, growth equity, and selective public equity and debt positions. The firm primarily focuses on companies providing services, including consumer, business, and healthcare services, as well as retail, distribution, and industrials. For more information, please visit www.leonardgreen.com.