June 30, 2015
K2 Waste Solutions LLC has acquired Lake Country Disposal (LCD) LLC, based in Menomonee Falls, Wis.
K2 Waste described the deal in a news release as a merger, with LCD adding K2 Waste to its ownership structure and naming K2 as its management team going forward. Terms of the deal were not disclosed.
LCD operates commercial and roll-off operations and recently was awarded a large local school district contract. Corpus Christi, Texas-based K2 has no operations in Wisconsin, but Co-President Eric Konik has business and family ties in the Milwaukee area, which he cited as a future strength of the merged company.
“We are excited to add Lake Country Disposal to our organization,” Konik said. “As a resident of the area, I was aware of their history in the marketplace and felt this was a wonderful opportunity for both entities.”
LCD was founded in 2001 by Joe Tate. “LCD’s solid history in the area only adds to our ability to offer a great option for local folks in and around Milwaukee to use a local company with strong ties to the community. We are anxious to see the growth we can generate together,” Konik said.
K2 formed earlier this year by Konik and Bill Killian, co-president and founder, to buy and start up waste collection firms. K2 made its first acquisition earlier in June, the Phoenix-based residential waste hauler Greenline Waste and Recycling LLC.
The aim for the company is to establish a strategic geographic stable of waste collection companies, focusing on mid-sized markets, single line of business companies, haulers in niche markets and other smaller scale firms. The company said it is currently considering several other acquisitions.
The transaction continues a steady trend of mergers and acquisitions of smaller waste and recycling operations in recent months. JBC Group purchased waste management firm A&D Environmental Services Inc. Earlier this month a new holding company, Mountain Waste & Recycling Inc., was formed to merge and manage two waste haulers and consider expanding the operation. It will serve as the parent company for Mountain Roll-Offs and InterMountain Waste & Recycling.
And Gold Medal Services LLC purchased substantially all the assets of waste hauler Casworth Enterprises Inc. and recycler Blue River Resources LLC.
In her June Waste360 Business Insights column, industry financial analyst Leone Young wrote of her impressions from WasteExpo 2015 that the bigger companies believe that high seller expectations for valuations on acquisitions is a stumbling block to more deals getting done.