By Stefanie Valentic
Private equity firm Kinderhook has completed the acquisition of Ecowaste, a new waste services provider formed from the merger of Live Oak Environmental and CARDS Recycling.
The transaction marks Kinderhook’s 159th acquisition to date and is the largest in the firm’s history. The firm originally acquired Louisiana-based Live Oak in 2021 and Arkansas-based CARDS Recycling in 2023 as part of recapitalization efforts.
Goldman Sachs Alternatives and Apollo S3 acted as fund partners in completing the current deal, according to Rob Michalik, Kinderhook managing partner.
“The company is built around a shared commitment to service, safety and operational discipline,” he said. “With Kinderhook’s continued backing and new growth capital, we are well positioned to expand our footprint, invest in our people and assets and continue delivering high-quality service to our customers.”
The deal allows Kinderhook’s limited partners to exit their investment while bringing in over $400 million in funding for organic growth and planned acquisitions, according to the company.
The merger of Arkansas-based CARDS and Live Oak into Ecowaste expands Kinderhook’s Mid-South investment in a region experiencing population growth and a burgeoning commercial and industrial sector.
Cor Carruthers, Kinderhook managing director, said in a statement that “as a combined company, Ecowaste has meaningful scale, proven integration capabilities and a deep pipeline of acquisition opportunities across its core markets.”
He added that “under Kinderhook’s ownership, Live Oak and CARDS both successfully executed aggressive growth strategies, collectively completing more than 35 add-on acquisitions resulting in established industry positions.”
Jefferies served as financial advisor, while Stifel acted as financial advisor and debt financing placement agent. Kirkland & Ellis LLP provided legal counsel.
A syndicate led by Ares Capital, with participation from MidCap Financial, Willow Tree and the Stifel Lending Program, provided debt financing, according to Kinderhook.
This is Kinderhook’s ninth acquisition in its solid waste management vertical.
