Two solid waste industry veterans have formed K2 Waste Solutions LLC to buy and start up waste collection firms and made their first acquisition–Phoenix-based Greenline Waste and Recycling LLC.
Eric Konik and Bill Killian created the Corpus Christi, Texas-based K2 to establish a strategic geographic stable of waste collection companies through purchases, start-ups and mergers. K2 will focus on mid-sized markets, single line of business companies, haulers in niche markets and other smaller scale firms, according to a news release.
K2 purchased residential waste hauler Greenline for an undisclosed amount. “Greenline's owner, Bret McClue, had built a nice little resi hauler in Phoenix in his short time in business, and we believe our involvement with Greenline will allow for further growth,” Co-President Konik said.
Killian said that K2 will announce a second acquisition July 1 in the east Texas region. The company also is considering several other acquisitions. “We'll have Interstate 10 pinned on the map, and to borrow a quote from a great Texas band, we'll be working from one end to the other, and all points in between,” Co-President Killian said. “We are a great option for the owner-operator who places a great concern on how his company is treated post-acquisition, on both the employee and customer side."
K2 will finance the start-ups and some of the acquisitions itself, but the firm has commitments from several equity sources to fund larger or more complex acquisitions.
Konic and Killian together have more than 40 years of industry experience and have been involved in nearly 20 acquisitions and divestitures between them.
"We are excited to see what we can do with this plan, and with the prospects we have already cultivated," both said.
The transaction continues a steady trend of mergers and acquisitions of smaller waste and recycling operations in recent months. Most recently, 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 feel that high seller expectations for valuations on acquisitions is a stumbling block to more deals getting done.