Kinderhook Industries has successfully concluded a significant financial restructuring for Ecowaste Solutions, establishing a dedicated single-asset continuation vehicle. This strategic maneuver provides Kinderhook's limited partners with an opportunity for liquidity while infusing $400 million in fresh equity capital. The substantial investment is earmarked to support Ecowaste's aggressive growth strategy, encompassing both organic expansion initiatives and targeted acquisitions within the waste management industry.
Ecowaste Solutions' CEO, Dustin Reynolds, expressed strong confidence in the company's future, highlighting that Kinderhook's sustained support, combined with the new capital infusion, positions them favorably for substantial growth. The company aims to broaden its operational reach, invest in its workforce and critical assets, and consistently deliver superior service to its expanding customer base.
The continuation vehicle, central to this transaction, is anchored by Kinderhook Fund 8 and receives robust backing from funds managed by Goldman Sachs Alternatives and Apollo S3. This collaborative effort marks a pivotal moment for all parties involved.
Rob Michalik, Managing Director at Kinderhook, emphasized the importance of these partnerships, noting the collective pride in collaborating with Goldman Sachs Alternatives and Apollo S3. He underscored the significance of this transaction for Kinderhook and its investors, recognizing it as the largest environmental services investment in the firm's history, reflecting its deep commitment to the sector.
Ecowaste's operational framework is built upon distinctive assets, and the company is poised to execute its value-creation blueprint. This includes pursuing organic growth opportunities, optimizing operational efficiencies, and engaging in strategic acquisitions to consolidate its market presence and enhance its service offerings.
This initiative represents Kinderhook's ninth platform investment in the solid waste management domain. Ecowaste was formed through the integration of Live Oak Environmental and CARDS Recycling, creating a comprehensive waste management platform that spans collection and post-collection operations across the Mid-South. This region is characterized by a growing population and increasing commercial and industrial activities, providing a fertile ground for Ecowaste's expansion.
Jefferies served as the financial advisor for the continuation vehicle transaction, while Stifel acted as both financial advisor and the exclusive placement agent for the debt financing. Legal counsel was provided by Kirkland & Ellis LLP. The debt financing package for the transaction was secured through a syndicate spearheaded by Ares Capital, with additional participation from MidCap Financial, Willow Tree, and the Stifel Lending Program, showcasing a broad institutional endorsement.
Ecowaste, headquartered in Dallas, is a leading provider of solid waste collection and disposal services throughout the Mid-South, serving over 400,000 customers. Kinderhook Industries, founded in 2003, has accumulated more than $10 billion in committed capital. The firm strategically focuses on middle-market businesses with specialized market positions across healthcare services, environmental and industrial services, and light manufacturing and automotive sectors.
This major financial restructuring for Ecowaste Solutions, spearheaded by Kinderhook Industries and supported by prominent financial institutions, is set to significantly enhance the company's operational capacity and market footprint. The infusion of $400 million in new equity will drive strategic growth, allowing Ecowaste to capitalize on the expanding opportunities in the Mid-South's waste management sector, solidify its market leadership, and continue its trajectory as a key player in environmental services.