merge acquisition

GFL, Santek Secure Strategic Acquisitions

GFL's deal boosts its U.S. presence while Santek gains routes in Georgia.

In separate deals, GFL Environmental Inc. and Santek Waste Services Inc. each announced key strategic acquisitions.

Toronto-based GFL has reached a deal to purchased Sterling Heights, Mich.-based Rizzo Environmental Services Inc. Meanwhile, Cleveland, Tenn.-based Santek Waste Services LLC. Announced its acquisition of North Metro Waste, Inc.’s residential and commercial customer base in Ball Ground, Ga.

Building a U.S. Base

In the first deal, Kinderhook Industries LLC sold its equity interest in Rizzo to a U.S. subsidiary of GFL. No financial terms were disclosed.

Founded in 1988, Rizzo is a market leader in municipal, commercial and industrial solid waste collection and in commercial recycling processing and brokerage. Rizzo currently provides collection services to more than 40 municipalities in Southeastern Michigan. The current management team of Rizzo, led by Chuck Rizzo, Jr. will remain with the Company.

GFL is a Canadian diversified environmental services company offering services in solid waste management, liquid waste management and soil remediation. Through its platform of operations in Canada and the U.S., GFL serves over 80,000 commercial, industrial and institutional customers, more than 2.5 million households under municipal collection contracts and has a workforce of more than 4,000 employees.

 “We are excited to partner with GFL and I’m grateful to retain and expand my equity share,” Rizzo CEO Chuck Rizzo said in a statement. “We are greatly appreciative of the support and strategic guidance that Kinderhook has provided over the last four years. Kinderhook has been an outstanding partner for our management team as we completed and integrated eleven acquisitions in conjunction with growing the business organically through the addition of over 20 new municipal contracts.”

“The sale of Rizzo illustrates Kinderhook’s investment strategy of partnering with strong management teams to build and grow successful companies that attract strategic buyers,” Rob Michalik, nanaging director at Kinderhook, said in a statement. “The combination of Rizzo and GFL creates one of the industry’s largest private environmental services providers and we expect Rizzo to continue to flourish under GFL’s ownership.”

Rizzo has been in the news of late because it’s at the center of the dispute playing out over Flint, Mich.’s solid waste collection. The mayor has attempted to terminate its contract with Republic Services and award it to Rizzo. Currently, Republic continues to serve the city under a 90-day contract as the fate of the contract remains in flux.

Santek Scores Georgia Buy

Meanwhile, Santek’s deal gives it further exposure in Georgia.

Effective Oct. 1st, Santek will be providing those services in Bartow, Cherokee, Pickens and Gordon counties, Ga. Santek currently manages the Redbone Ridges Landfill in Gordon County and this acquisition will complement Santek’s waste collection presence locally.

Santek Chief Business Development Officer Edward Caylor said this most recent purchase enhances Santek's growing presence in the North Atlanta market.

“We continue to build upon the momentum we’ve created in acquisitions this year and this purchase provides us with a strong platform in the North Atlanta market,” Caylor said in a statement.

Waste360 explored Santek’s growth strategy in an interview with its executives in September.

In December 2015, Santek completed a $153 million recapitalization of the company to provide for growth opportunities. Since then, the firm has completed several deals.

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