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

RJG buys UK training group G&A

September 30, 2014 11:10 am ET

G&A Moulding Technology Ltd., a United Kingdom-based training and consultancy group, has been bought by RJG Inc., the U.S.-based training business.    More

Image

Clariant extends reach into Asia with acquisition

September 29, 2014 9:54 am ET

Clariant International Ltd. is buying VitaPac (HK) Industrial Ltd., a Hong Kong-based company which produces desiccant packets for the healthcare...    More

Image

Recycling group releases shrink sleeve label guidelines

September 26, 2014 4:02 pm ET

A post-consumer plastics recycling trade group is out with a set of recommendations to help guide the packaging industry on the use of shrink sleeve...    More

Image

Nypro Healthcare continues to grow following Jabil acquisition

September 26, 2014 1:59 pm ET

Nypro Healthcare's newest medical device manufacturing facility offers 200,000 square feet of carefully configured Class 8 clean room molding and...    More

Image

England's Essentra buying Abric Berhad

September 26, 2014 11:31 am ET

Packaging firm Essentra plc has announced the planned acquisition of Abric Berhad, a Kuala Lumpur-based manufacturer of security sealing products.    More

Market Reports

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our industry analysis highlights macro industry trends and micro trends faced by companies that do business in Mexico. The report also provides key industry statistics and forecasts to anticipate future industry expansion.

Learn more

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

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Upcoming Plastics News Events

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

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

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events