Greenstar buy boosts Waste Management's recycling capacity

By Jim Johnson
WASTE & RECYCLING NEWS

Published: February 5, 2013 12:48 pm ET
Updated: February 5, 2013 12:51 pm ET

Related to this story

Topics Mergers & Acquisitions, Recycling

HOUSTON -- Waste Management Inc. is adding more than a million tons to its already massive recycling operation by snatching up Greenstar Recycling LLC, which calls itself the largest private recycler in the country.

Greenstar, owned by NTR plc of Dublin, Ireland, landed in the New World in 2007, with plans to become a recycling powerhouse. Along the way, the company spent more than $300 million to create a multi-state operation.

The sale, announced Jan. 31, could be worth up to $220 million, depending on the performance of Greenstar's assets under Waste Management.

"I think this is another sign that Waste Management is taking recycling pretty darn seriously. It's a cornerstone of what we're trying to do as a company going forward," said William Caesar, president of Waste Management Recycle America, the company's recycling business.

"And these sets of assets are going to position us to not only expand our service coverage, but be able to deepen our coverage where we are already operating," he said.

Waste Management and Greenstar started talking about a possible deal last fall and decided to enter into exclusive negotiations that lead to this week's deal.

As a pure-play recycler, Greenstar handled about 1.5 million tons of material last year, a number that gives a significant boost to Waste Management's reuse totals. The solid waste management company is in the midst of a years-long push to triple the amount of recyclables it handles and wants to hit 20 million tons by 2020.

Waste Management recycled 9 million tons last year, so the Greenstar deal pushes that number over 10 million. Waste Management's overall recycling capacity also increases to about 15 million tons through the Greenstar deal.

Greenstar has locations in Akron, Ohio; Allentown, Pa.; Pittsburgh; Dallas; San Antonio; Houston; Fort Worth, Texas; Oklahoma City; Tulsa, Okla.; Des Moines, Iowa; Howell, Mich.; Kensington, Conn.; Normal, Ill.; and Monmouth County and Paterson, N.J., according to the company's website.

A majority of the material recovery facilities that Greenstar brings to Waste Management – seven of 12 – are located in Texas and Oklahoma, Caesar said. Seven of the 12 sites also are single-stream.

"Waste Management is organized into 17 different geographic business units. Probably about five years ago, Waste Management didn't own a single recycling asset in the state of Texas. And with this acquisition, the Texas-Oklahoma region, the area, will have the single largest volume of recycling in the whole company," Caesar said.

"There's always been a good fit of their assets with our business, with the footprint of our business. They've got assets in a few places where we don't have any assets. They've got assets in place where we need more assets," Caesar said.

NTR is selling off its Greenstar assets in the United States as the firm looks to focus its business on renewable energy.

"This sale makes strategic sense for us, in the context of consolidating our portfolio and allowing us to focus on our strategy of driving future growth in the renewable energy sector. NTR has built a valuable recycling platform in its Greenstar business, which is reflected in its attractiveness to WM, an industry leader," said NTR CEO Michael McNicholas said in a statement.

Waste Management paid $180 million for Greenstar and could pay up to another $40 million in 2018 if "performance criteria" are met, NTR said.


Comments

Greenstar buy boosts Waste Management's recycling capacity

By Jim Johnson
WASTE & RECYCLING NEWS

Published: February 5, 2013 12:48 pm ET
Updated: February 5, 2013 12:51 pm ET

Post Your Comments


Back to story


More stories

Image

New medical firm buys Clairson Plastics

September 19, 2014 4:33 pm ET

Custom injection molder Clairson Plastics is being sold to a new start-up that plans to dive into the medical market with a new dialyzer, a key...    More

Image

Hong Kong's TK eyes expansion, may buy Nypro Tool operation

September 19, 2014 2:49 pm ET

Hong Kong-based mold maker and plastics processor TK Group (Holdings) Ltd. said it's reached a tentative agreement to buy a tooling factory in...    More

Exo-s buys injection and blow molder in Mexico, expands footprint

September 19, 2014 2:15 pm ET

Custom molder Exo-s Inc. has bought an injection and blow molding operation in San Juan del Rio, Querétaro, Mexico.    More

Image

Bayer spinning off plastics business

September 18, 2014 8:49 am ET

Bayer AG will spin off its MaterialScience plastics group into a separate, publicly-traded company within the next 12 to 18 months.    More

Image

PET to PET boosts recycling capacity

September 18, 2014 11:14 am ET

PET to PET Recycling Austria GmbH, a bottle-to-bottle PET recycling operation backed by Coca-Cola Hellenic Bottling and several beverage manufacturers...    More

Market Reports

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook – North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events