Date: March 23, 2021
Source: Wheelabrator Technologies Inc.
Wheelabrator (Portsmouth, NH) announced that it will acquire Tunnel Hill Partners (Stamford, CT). The merger is set to close on March 25th and the combined entities will rebrand as WIN Waste Innovations. With the new combined entity expected to generate about $1 Billion in combined annual revenue, it will be one of the largest private waste firms in the country. The two companies were acquired separately by Macquarie Infrastructure and Real Assets (MIRA) in early 2019 which will continue to hold a controlling interest in the new enterprise until its possible sale or IPO.
According to company leadership, the aim of the merger is to deliver end-to-end services to customers and communities. By vertically integrating the company, they say they will be able to offer "curb to grid" service. Both companies remain owned by private equity firms. WIN Waste will also issue a seven-year $1 Billion loan it will use to create a $629 Million sponsor dividend and repay $306 Million of Tunnel Hill's existing debt.
The expansion of Wheelabrator comes at a time where growing attention is focused on methane emissions from landfills and declining landfill capacity in the Northeast. This attention is likely to shift public opinion in a positive way toward landfill alternatives, like the ones that WIN Waste will be able to provide.