Macquarie Asset Management (MAM) and Coastal Waste & Recycling (Coastal) announced that a fund managed by MAM has completed the recapitalization of Coastal and become the majority owner of the business. Coastal is one of the largest independent vertically integrated solid waste and recycling businesses in the Southeast. MAM’s investment will accelerate Coastal’s growth trajectory and solidify its leadership position as a leading privately held vertically integrated solid waste and recycling business in the Southeast; the investment will have no impact on the company’s existing services or operations in the communities in which Coastal serves. As part of the transaction, Brendon Pantano will continue as Chief Executive Officer and together with his management team and a portion of the current shareholders of Coastal, will retain ownership stakes in the company alongside MAM.
“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,” said 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. With their experience in the space and commitment to providing ongoing capital and specialised support to management teams, we will be able to accelerate our growth in Florida as well as into adjacent geographies,” said Coastal Chief Executive Officer Brendon Pantano. “This partnership will help us invest in needed waste infrastructure and position Coastal to further expand its waste and recycling services to more communities.”
“I am proud of what Brendon and his team have built since we formed Coastal six years ago,” added Brian D’Amico, Managing Partner at Summer Street Capital. “I am excited to see Coastal’s next stage of growth and look forward to supporting the management team via my involvement with MAM.”
Since its formation in 2017, via a partnership between Brendon Pantano, Summer Street Capital and Concentric Equity Partners, Coastal has grown to be one of the largest solid waste and recycling businesses in the Southeast with operations predominantly in Florida and in Georgia, serving over 450,000 customers, with a fleet of nearly 600 vehicles at 11 collection depots, and 8 post collections facilities across Florida and Georgia.
MAM-managed funds have invested over $US5.0 billion of equity in the waste industry in the Americas since 2007, including realized investments in Waste Industries, WCA Waste, and GFL Environmental, and current investments in WIN Waste Innovations, Solví Participações, LRS, GWZ, DTG Recycle and now Coastal. Nomura Greentech acted as exclusive financial advisor to Macquarie Asset Management and Sidley Austin LLP acted as legal counsel. Houlihan Lokey acted as lead financial advisor, Brown Gibbons Lang acted as co-financial advisor, and Winston & Strawn acted as legal counsel to Coastal Waste & Recycling.