Macquarie completes investment in Coastal Waste & Recycling

A fund managed by Macquarie Asset Management (MAM), which is a business of Sydney-based Macquarie Group, has completed a recapitalization of Boca Raton, Florida-based Coastal Waste and Recycling, becoming a majority owner of the business. Financial terms were not disclosed.

Coastal is a privately owned solid waste and recycling company with 19 locations in Florida and Georgia. The company serves more than 450,000 customers with a fleet of nearly 600 collection vehicles, 11 collection depots and eight postcollection facilities.

Formed via a partnership between CEO Brendon Pantano, Orchard Park, New York-based Summer Street Capital and Chicago-based Concentric Equity Partners in 2017, Coastal has grown to become one of the largest independent, vertically integrated solid waste and recycling businesses in the Southeast. 

Photo by Ashley Pantano
Photography

According to a news release announcing the deal, MAM’s investment will accelerate Coastal’s growth trajectory and solidify its leadership position in the communities it currently serves. The investment will have no impact on the company’s existing services or operations.

As part of the transaction, Pantano will continue as CEO and, together with his management team and a portion of the current shareholders of Coastal, retain ownership stakes in the company alongside MAM.

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“Coastal’s leadership in solid waste collections and recycling and focus on a diversion-led business model with high-quality service positions the company well to meet the waste management and sustainability expectations of the communities in which Coastal operates,” says Karl Kuchel, CEO of Macquarie Infrastructure Partners. “We look forward to partnering with the Coastal management team to support the next stage of the company’s growth.”

“We are excited to partner with Macquarie Asset Management through this investment into Coastal," Patano says. "With their experience in the space and [a] commitment to providing ongoing capital and specialized support to management teams, we will be able to accelerate our growth in Florida as well as into adjacent geographies. This partnership will help us invest in needed waste infrastructure and position Coastal to further expand its waste and recycling services to more communities.”

MAM-managed funds have invested more than $5 billion of equity in the waste industry in the Americas since 2007, including realized investments in Vaughn, Canada-based GFL Environmental, as well as current investments in Portsmouth, New Hampshire-based WIN Waste Innovations; Brazil-based Solví Participações; Rosemont, Illinois-based LRS; San Jose, California-based GreenWaste, formerly Zanker Recycling; Bothell, Washington-based DTG Recycle and Coastal.

Nomura Greentech, New York City, acted as exclusive financial advisor to MAM, and Sidley Austin LLP, Chicago, acted as legal counsel.

Houlihan Lokey, Los Angeles, acted as lead financial advisor; Brown Gibbons Lang & Co., Cleveland, acted as co-financial advisor; and Winston & Strawn, Chicago, acted as legal counsel to Coastal.