Chicago environmental services companies merge

  • Dec 2012
  • Business Services
  • M&A: Sell-Side
  • Debt Advisory
  • US

Livingstone’s Business Services team is pleased to announce the merger of Lakeshore Waste Services, LLC and Recycling Systems, Inc. to create Lakeshore Recycling Systems LLC.

Tensile Capital Management LLC provided an equity investment and Comerica Bank provided the debt financing required for the transaction. The merged group, which has its primary operations in greater Chicago, will be a diversified waste services company providing commercial, residential, recycling and roll-off waste collection services to commercial and municipal customers.

The group also owns and operates the largest material recovery facility in Illinois, processing nearly one million tons of waste material annually. Lakeshore Recycling will have a heavy emphasis on waste material management, including recycling, beneficial reuse and landfill diversion.

Josh Connell, CEO of Lakeshore said, “Tensile and Comerica are the ideal partners capable of providing not only the capital, but also the experience necessary to grow our business in the massive, rapidly-evolving Chicago waste industry. We are confident that our people and our assets, coupled with the expertise and capital from our new partners, will allow us to rapidly expand from our combined position as a top three independent in Chicagoland.”

“Livingstone provided expert guidance throughout the complicated merger transaction and facilitated a competitive marketing process to provide RSI and Lakeshore shareholders a variety of attractive financing alternatives to consummate the merger,” added Jerry Golf, RSI President.

“The merger of Lakeshore and RSI creates a formidable player in the Chicago waste market,” commented Tensile Managing Partner Doug Dossey. “The Company’s recent success in the municipal markets, including a steadily growing relationship with the City of Chicago, bodes well for its long-term growth trajectory and creates an on going need for the type of flexible capital that Tensile can provide.”

Partner at Livingstone Chicago Steve Miles added, “We are thrilled to have helped forge the relationship between Lakeshore and RSI and secure growth capital to accelerate LRS’ platform expansion. We believe the creation of LRS is illustrative of the types of transactions smaller independents in the waste management industry must pursue in the face of an increasingly consolidated and capital-intensive marketplace.”

The merger of Lakeshore and RSI follows other recent notable Livingstone transactions involving Chicago businesses including OAD Orthopaedics, Goose Island Beer Co., Trio Video, Genuine Scooters and ATI Physical Therapy.”

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