Littlejohn & Co. Welcomes Ares as Significant Investor in Interstate Waste Services
Interstate Waste Services announces that funds managed by Ares Management Corporation will acquire a significant equity stake in the company. IWS also completes a debt recapitalization with a new first-lien term loan. Terms of the transactions were not disclosed.
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Ares Management Corporation acquires a significant equity stake in Interstate Waste Services
Debt recapitalization completed with a new first-lien term loan
10/24/2023 - 11:00 AM
Interstate Waste Services Completes Debt Recapitalization
GREENWICH, Conn. & LOS ANGELES --(BUSINESS WIRE)--
Littlejohn & Co. LLC (“Littlejohn”), a private investment firm based in Greenwich, CT , and Interstate Waste Services (“IWS” or the “Company”) today announced that funds managed by the Private Equity Group of Ares Management Corporation (NYSE: Ares) have agreed to acquire a significant equity stake in IWS. Littlejohn and Ares funds will each have significant ownership stakes in the Company. Alongside the equity transaction, IWS also announced that it has completed a debt recapitalization with a new first-lien term loan via a JP Morgan-led arranger group. Terms of the transactions were not disclosed.
Headquartered in Teaneck, New Jersey , IWS is the largest privately held, vertically-integrated provider of solid waste collection, transfer, recycling and disposal services in the greater New York City and New Jersey markets. With nearly 30 facilities and 1,900+ employees, IWS is one of the nation’s fastest growing and most innovative waste collection and recycling firms. Over the past two decades IWS has expanded and modernized to meet the ever-changing needs of commercial, industrial and residential waste generators throughout New York and New Jersey . The Company believes having the support of both Littlejohn and Ares will further accelerate the Company’s growth, providing access to greater financial and operational resources and capabilities that will enable IWS to pursue organic and inorganic growth initiatives while continuing to safely deliver essential environmental services to its customers.
“We are proud to work with Ares as we continue to strategically build IWS services and capabilities for customers,” said Brian Michaud, a Managing Director at Littlejohn. “Since our investment in 2020, IWS has continued to grow in the New York and New Jersey regions, and we will continue to support management’s growth initiatives.”
“This transaction is a testament to our unique platform, established market presence, and dedicated leadership team,” said Michael DiBella, CEO of IWS. “Our partnership with Littlejohn has enabled the rapid growth of IWS over the last three years, and, going forward, we are excited to leverage the substantial financial and operational expertise that both Ares and Littlejohn bring to the table.”
“We are pleased to welcome Ares to the IWS team as we enter a new chapter for our business,” continued Brian D’Amico, Executive Chairman of IWS. “Littlejohn’s and Ares’ support, along with the debt recapitalization, position IWS for accelerated growth in its core segments as we continue to invest in several expansion initiatives.”
“We are thrilled to work with Littlejohn and to join the Interstate family. Mike, Brian and the rest of the team have built an incredible solid waste platform, that we believe is well-positioned to leverage its great culture and service-focus to take advantage of the exciting growth opportunities ahead. Together, we believe the combination of Ares, Littlejohn and IWS will be great not only for the company, but importantly for all its stakeholders, including customers, employees, and the communities that IWS serves,” said Natasha Li, Partner in the Ares Private Equity Group.
Brown Gibbons Lang & Company and Houlihan Lokey served as financial advisors and Sheppard, Mullin, Richter & Hampton LLP served as legal counsel to IWS. R.W. Baird served as exclusive financial advisor and Kirkland & Ellis LLP served as legal counsel to Ares.
About Interstate Waste Services:
Interstate Waste Services, Inc. is a vertically-integrated provider of solid waste and recycling services in the greater New York City and New Jersey markets. IWS operates over 650 collection vehicles serviced by a network of nearly 30 facilities, including transfer stations, material recovery facilities, transload facilities and a rail-served solid waste landfill. IWS is one of the most progressive and innovative providers of non-hazardous waste management services with a diverse range of residential, industrial, construction and commercial customers throughout Northern and Central New Jersey , Orange and Rockland Counties in New York , as well as the five boroughs of New York City . For more information, please visit www.interstatewaste.com .
About Littlejohn & Co., LLC:
Littlejohn & Co. is a Greenwich, Connecticut -based investment firm focused on private equity and debt investments primarily in growing middle-market industrial and services companies that can benefit from Littlejohn’s 25+ years of operational and sector expertise. With approximately $8 billion www.littlejohnllc.com .
About Ares Management Corporation:
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, private equity, real estate and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to deliver consistent and attractive investment returns throughout market cycles. As of June 30, 2023, Ares Management Corporation's global platform had approximately $378 billion North America , Europe , Asia Pacific and the Middle East . For more information, please visit www.aresmgmt.com .
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Source: Littlejohn & Co. LLC
Who is acquiring a stake in Interstate Waste Services?
Funds managed by Ares Management Corporation are acquiring a significant equity stake in Interstate Waste Services.
What type of transaction did IWS complete?
IWS completed a debt recapitalization with a new first-lien term loan.
Who served as financial advisors to IWS?
Brown Gibbons Lang & Company and Houlihan Lokey served as financial advisors to IWS.
Who served as legal counsel to IWS?
Sheppard, Mullin, Richter & Hampton LLP served as legal counsel to IWS.
Who served as financial advisor to Ares?
R.W. Baird served as exclusive financial advisor to Ares.
Who served as legal counsel to Ares?
Kirkland & Ellis LLP served as legal counsel to Ares.
