Macquarie Asset Management completes investment in Coastal Waste & Recycling

Macquarie Asset Management (MAM), the world’s largest infrastructure manager¹ and Coastal Waste & Recycling (Coastal) announced that a fund managed by MAM has completed the recapitalisation of Coastal and become the majority owner of the business. Coastal is one of the largest independent vertically integrated solid waste and recycling businesses in the Southeast. Financial terms were not disclosed.

MAM’s investment will accelerate Coastal’s growth trajectory and solidify its leadership position as a leading privately held vertically integrated solid waste and recycling business in the Southeast; the investment will have no impact on the company’s existing services or operations in the communities in which Coastal serves. As part of the transaction, Brendon Pantano will continue as Chief Executive Officer and together with his management team and a portion of the current shareholders of Coastal, will retain ownership stakes in the company alongside MAM.

“Coastal’s leadership in solid waste collections and recycling and focus on a diversion-led business model with high quality service positions the company well to meet the waste management and sustainability expectations of the communities in which Coastal operates,” said Karl Kuchel, CEO of Macquarie Infrastructure Partners. “We look forward to partnering with the Coastal management team to support the next stage of the company’s growth.”

“We are excited to partner with Macquarie Asset Management through this investment into Coastal. With their experience in the space and commitment to providing ongoing capital and specialised support to management teams, we will be able to accelerate our growth in Florida as well as into adjacent geographies,” said Coastal Chief Executive Officer Brendon Pantano. “This partnership will help us invest in needed waste infrastructure and position Coastal to further expand its waste and recycling services to more communities.”

“I am proud of what Brendon and his team have built since we formed Coastal six years ago,” added Brian D'Amico, Managing Partner at Summer Street Capital. “I am excited to see Coastal’s next stage of growth and look forward to supporting the management team via my involvement with MAM.”

Since its formation in 2017,  via a partnership between Brendon Pantano, Summer Street Capital and Concentric Equity Partners, Coastal has grown to be one of the largest solid waste and recycling businesses in the Southeast with operations predominantly in Florida and in Georgia, serving over 450,000 customers, with a fleet of nearly 600 vehicles at 11 collection depots, and 8 post collections facilities across Florida and Georgia.

MAM-managed funds have invested over $US5.0 billion of equity in the waste industry in the Americas since 2007, including realised investments in Waste Industries, WCA Waste, and GFL Environmental, and current investments in WIN Waste Innovations, Solví Participações, LRS, GWZ, DTG Recycle and now Coastal.

Nomura Greentech acted as exclusive financial advisor to Macquarie Asset Management and Sidley Austin LLP acted as legal counsel.

Houlihan Lokey acted as lead financial advisor, Brown Gibbons Lang acted as co-financial advisor, and Winston & Strawn acted as legal counsel to Coastal Waste & Recycling.

About Coastal Waste & Recycling

Headquartered in Boca Raton, Florida, Coastal Waste & Recycling is a privately owned solid waste & recycling company with 19 locations in Florida and Georgia. Coastal’s team provides residential, commercial, industrial, and municipal services to our customers in the regions we serve. Our locations provide comprehensive solid waste services that include collection operations, transfer stations, portable restroom services, along with recycling, and disposal facilities. With a commitment to a culture focused on our core values and a vision of growth, both personal growth, and business growth, we have over 800 employees providing over 1 million services each month.

Learn more at www.coastalwasteinc.com.

About Summer Street Capital

Summer Street Capital Partners, LLC, founded in 1999, is a Buffalo, NY-based private equity fund manager with committed capital focused on investing in small and middle-market companies in environmental services and manufacturing. The firm is a leading investor in the environmental services sector, with nearly 20 years of experience acquiring and building companies in waste collection, transportation, and disposal across the eastern United States. Summer Street’s investments support management buyouts, family transitions, corporate divestitures, growth financings, and recapitalisations. www.summerstreetcapital.com

1. IPE Real Assets 2021 – Top 100 Infrastructure Investment Managers (4 July 2022), based on assets under management as of 31 December 2021.