K2 Waste Solutions LLC has purchased waste and recycling hauler LT’s Garbage Service, based in Dayton, Texas, for an undisclosed amount.
LT’s Garbage serves residential customers in the far-eastern areas of the Houston region, along with a select group of commercial customers, according to a news release from Corpus Christi-based K2.
“Larry and Donna Newland started the company 23 years ago and did a great job building it, growing it and ensuring that their customer base never had a reason to leave,” said Bill Killian, K2 Waste co-president and founder. “We will carry on that tradition–for customers and employees–while expanding the company’s geographic footprint and additional lines of business.”
Killian said the commercial waste collection line will be a focus of growth, as well as an entry into the roll-off market in the growing rural areas of east Harris, Chambers and Liberty counties.
“This acquisition fits our model–niche businesses in niche markets where we have an opportunity to set ourselves apart while establishing a strong foothold on an area we want to operate in. That’s exactly what LT’s offers us.”
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 two acquisitions in June, buying the Phoenix-based residential waste hauler Greenline Waste and Recycling LLC and then Lake Country Disposal (LCD) LLC, based in Menomonee Falls, Wis.
K2’s aim 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.