#United States #Goldman Sachs #New York #Kinderhook Industries #Ecowaste Solutions

Kinderhook Industries Partners with Goldman Sachs and Apollo S3

In a significant move within the environmental services sector, Kinderhook Industries, a prominent middle market private equity firm, has completed a monumental transaction worth $1.0 billion. This deal culminates in the formation of Ecowaste Solutions, a newly established waste management company resulting from the merger of Live Oak Environmental and CARDS Recycling. This strategic combination underscores Kinderhook’s commitment to expanding its footprint in the solid waste management space, marking its 159th acquisition in environmental and industrial services.

A Pioneering Move in Waste Management

Announced on January 16, 2026, the merger not only symbolizes a landmark win for Kinderhook but also introduces a platform will that allows it to cater to over 400,000 customers across multiple states including Texas, Alabama, and Florida. By leveraging the robust operations of its predecessor companies, the new entity, Ecowaste Solutions, is well-positioned to capitalize on the ongoing population growth and burgeoning commercial activity in the Mid-South region of the United States.

Rob Michalik, Managing Director of Kinderhook, expressed pride in their collaboration with Goldman Sachs Alternatives and Apollo S3. "This partnership represents our largest investment in environmental services to date," Michalik stated. With this alignment of interests, the continued growth prospects for Ecowaste are promising, buoyed by an infusion of over $400 million in new equity capital aimed at supporting ongoing organic growth and acquiring other strategic assets.

Focus on Sustainability and Growth

Ecowaste is built around high-quality, differentiated assets that allow it to execute a well-defined value-creation strategy. The combination is poised to enhance operational efficiencies while pursuing strategic acquisitions to ensure continued growth. Both Dustin Reynolds, CEO of Ecowaste Solutions, and Michalik emphasize a shared commitment to exceptional service, safety, and operational discipline as cornerstones of their business philosophy.

Dustin Reynolds expressed enthusiasm about the new chapter for the company. He highlighted that, with Kinderhook's foundational support and the new growth capital, Ecowaste is excited about expanding its operational footprint and further investing in its people and resources. This enthusiastic outlook reflects confidence in the strategic direction set forth by the management team.

Past Successes Lead to Future Opportunities

The track record of Live Oak and CARDS under Kinderhook’s ownership also indicates the merged entity's potential for success. The former two companies adeptly executed aggressive growth strategies, which included completing more than 35 add-on acquisitions, leading to established positions within the industry. As Ecowaste, the newly combined company boasts significant scale, proven integration capabilities, and a robust pipeline of acquisition prospects across core markets.

Financial advisers played a critical role in facilitating this transaction. Jefferies acted as financial advisor to the continuation vehicle transaction, while Stifel served as both financial advisor and sole placement agent for the debt financing, aligning with a syndicate led by Ares Capital. Legal advisory was provided by Kirkland & Ellis LLP, which adds an additional layer of confidence in the structural robustness of this lucrative merger.

Conclusion

As the waste management sector continues evolving, the creation of Ecowaste Solutions under Kinderhook Industries signals hopeful growth and sustainability for the industry. With its strategic partners and funding, the firm is set to drive innovation and deliver high-quality services to its burgeoning customer base. This merger is not merely about expansion; it signifies a thoughtfully curated approach to environmental stewardship, economic growth, and an unwavering commitment to community service—all essential elements in today’s business landscape.