Waste & Recycling M&A Update – August 2025

Waste & Recycling M&A Momentum Builds as Regulations Ease and Players Optimize Portfolios

Antitrust and regulatory pressures have long hindered Waste & Recycling merger and acquisition (M&A) market activity due to stricter policy characteristics; however, the sector has seen acquisition momentum build as players seek streamlined operations and regulations ease under the new administration. Sector participants have pursued consolidation to gain route density, expand service offerings, and unlock operational synergies. Regulators have long scrutinized these moves in the past through the lens of local market concentration, landfill ownership, and control of transfer stations and hauling routes—making inorganic growth a more complex and costly endeavor. However, the administration change has begun to ease certain aspects of the antitrust review process, offering a potentially more flexible path forward. Rather than halting consolidation efforts, antitrust policy has encouraged divestiture activity and influenced how deals are structured, priced, and executed. This has prompted both strategics and private equity (PE) sponsors to pursue acquisitions of divested assets, bolstering the Waste & Recycling M&A market.

In a sector where route density and asset control define competitive advantage, M&A proves to be a margin engine. Recent tuck-ins by large strategics show that targeted acquisitions, even under regulatory watch, are fueling EBITDA growth and portfolio optimization.

Timm KuechleSenior Director, Capstone Partners

Softening Antitrust Policy Supports Optimism for Waste & Recycling M&A

The heavily regulated Waste & Recycling sector is expected to shift towards a less restrictive M&A environment with regulatory pressures easing under the new administration. While the Department of Justice (DOJ) and Federal Trade Commission (FTC) continue to hold central roles in overseeing fair competition, the focus has increasingly shifted toward regional dominance, particularly in areas with limited assets like landfills and transfer stations. With the DOJ and FTC guiding the national process, individual states retain the authority to reject deals based on local laws, especially when acquisitions involve both collection and disposal (C&D) assets in the same geographic area. These transactions often face scrutiny due to concerns over market concentration and barriers to entry for smaller haulers. To mitigate regulatory impacts to M&A processes, large buyers have begun modeling antitrust remedies early in the deal process and factoring in divestiture proceeds into valuations to better account for the impact of regulatory changes. In turn, sellers have been expected to assess local market concentration prior to initiating a sale process, anticipating buyer pushback. Investors seeking growth opportunities have increasingly targeted niche or regional operators with minimal overlap to reduce regulatory friction.

These evolving antitrust dynamics have kept investors alert for signs of momentum as the second half of the year unfolds. Notably, during President Trump’s first term (2017-2020), active civil investigations totaled 289 cases, according to the DOJ Antitrust Division.¹ In comparison, that number increased 24.9% to 361 under the Biden administration (2021-2024). The current Trump administration is anticipated to continue encouraging consolidation in the broader markets throughout the remainder of the term. In June 2025, the DOJ and FTC shared updates on the Trump administration’s evolving antitrust policies reflecting a departure from the approval framework established under the Biden administration, highlighting a renewed openness for structural merger remedies such as divestitures. This shift may suggest a more adaptable and pragmatic regulatory climate has begun to emerge, offering a potentially optimistic outlook for sector participants.

Waste Management (NYSE:WM), the largest hauler in the sector, has faced DOJ and FTC scrutiny, particularly over antitrust concerns related to acquisitions. As of April 2025, the Houston-based company held a 20% share of the total market, according to IBISWorld.² In November 2024, WM acquired Stericycle (Nasdaq:SRC) for $7.7 billion, integrating its regulated medical waste and secure information destruction services into the newly formed WM Healthcare Solutions division. This strategic move expanded WM’s presence in the Healthcare Environmental Services market and aligned with its sustainability and financial growth goals. Following the acquisition, WM initiated a series of divestitures to Urbaser for a total of $86.4 million (January 2025). The divestitures included select international operations and legacy service lines in Spain and Portugal. Subsequently, WM has engaged in efforts to sell Stericycle’s U.S. Environmental business, which was deemed non-core to WM’s long-term strategy and to appease antitrust regulators. These divestitures reflect WM’s focus on optimizing its portfolio around high-growth, high-margin sectors while leveraging operational synergies across its expanded service offerings. Capstone expects sector M&A volume to recover as easing procedural hurdles will likely create a favorable backdrop for consolidation strategies.

Buy-and-Build Momentum Supports Future Waste & Recycling M&A Landscape

The Waste & Recycling M&A market has continued to show signs of resilience despite a decrease in overall deal volume, shaped by shifting buyer dynamics and ongoing consolidation efforts. Waste & Recycling M&A activity has declined 11.7% year-over-year (YOY) to 98 deals in year-to-date (YTD) 2025 from 111 in the prior year period. Ongoing sector consolidation and strategic divestitures—partly influenced by antitrust regulations—have helped sustain PE interest and deal momentum in an otherwise selective market. Financial buyers have led the sector YTD, accounting for 55.1% of total deal flow. PE add-on activity has begun to rebound after two years of decline, rising to 54 deals from 51 in the prior year period, while platform transactions have remained steady at eight YTD compared to seven in YTD 2024. PE firms have continued to pursue roll-up strategies, acquiring smaller operators to build route density and operational scale. In contrast, strategic buyer activity has slowed, with total sector deals falling 9.2% YOY to 44 in YTD 2025. This has been largely due to a pullback from private strategics, whose deal count dropped to 22 YTD from 41 in the prior year period. Public strategics buyers have shown more stability, with deal count increasing slightly to 22 from 19. Overall, sector acquirers have prioritized consolidation strategies to enhance market presence and unlock long-term growth opportunities.

Regulatory scrutiny and capital discipline have remained top of mind for sector participants as the antitrust landscape has continued to evolve. Consolidation among strategics has benefited from an exchange of unprofitable or inefficient operations, allowing acquirers to gain strategic assets without deploying the capital required for full entity purchases. This asset-focused approach has reduced upfront risk and enabled buyers to selectively acquire capabilities, customer bases, or geographic footprints that align with their strategic priorities. Of note, Ecogensus acquired two recycling facilities in May 2025 for an undisclosed sum. Ecogensus is a provider of sustainable waste-to-value solutions. The acquisition marks an important step for Ecogensus’ U.S. expansion while supporting the company’s vision for sustainable waste management solutions. Bolt-on acquisitions have become an increasingly attractive vehicle for growth, allowing buyers to deepen market presence without raising significant antitrust concerns. Sector operators have actively reshuffled their portfolios, transferring C&D assets to streamline operations, comply with regulatory mandates, and unlock synergies. These asset swaps and divestitures have created new entry points for buyers to expand into less concentrated markets with minimal overlap, reinforcing the sector’s appeal as a resilient and scalable investment opportunity. Capstone expects waste & recycling M&A activity to persist, particularly among PE firms and public strategics seeking to scale efficiently while preserving operational flexibility.

Private Equity Capitalizes on Divestitures and Platform Growth Opportunities in the Waste & Recycling Market

Fragmentation in the Waste & Recycling space has created inefficiencies, making an ideal environment for PE-led buy-and-build strategies to drive scale and geographic expansion. The sector’s recurring revenue models and growing demand for sustainable waste solutions have continued to elevate attractiveness of long-term waste and recycling investments. Consolidation efforts aimed at boosting operational efficiency have sustained M&A volume in the space. Recent divestitures, prompted by companies navigating antitrust compliance processes, have created a rare opportunity for PE firms to acquire high-quality assets from larger players. Several notable sector deals are listed below.

• Goldman Sachs Asset Management Announces Acquisition of Liquid Environmental Solutions (July 2025, Undisclosed) – Goldman Sachs Asset Management has announced the acquisition of Liquid Environmental Solutions (LES) from Audax Private Equity (July 2025, undisclosed). LES is a national service provider within the circular economy, managing non-hazardous liquid waste. Audax has nearly doubled LES’ footprint, now operating over 90 locations across all 50 states since its acquisition of the company in December 2017 (undisclosed), according to a press release.³ The company has completed 13 strategic acquisitions, driving geographic expansion and enabling entry into adjacent service lines. These moves have strengthened LES’ value proposition, enhancing its appeal to both national chains and local customers. “Through managing the entire liquid-waste lifecycle, LES provides an essential service to its clients, while supporting sustainability programs that protect critical infrastructure and help to divert liquid waste from landfills. We believe Goldman Sachs Alternatives represents an ideal partner and fit for LES, as the company pursues its next stage of growth,” mentioned Joe Rodgers, a Partner at Audax, in the press release.
• Momentum Environmental Acquires Certain Assets of ESG (May 2025, Undisclosed) – In May 2025, Nonantum Capital Partners-backed Momentum Environmental acquired certain assets of ESG for an undisclosed sum. ESG is comprised of three entities: The Environmental Service Group, American Recyclers, and Genesee Soil Recycling. The acquisition of these assets expands Momentum Environmental’s capabilities and operational presence in Western New York while also supporting the company’s broader growth strategy in neighboring geographies, according to Business Wire.⁴ “ESG represents everything we look for in a partner—deep expertise, operational strength, and a commitment to service. By uniting our teams and capabilities, we’re expanding the scale, sophistication, and speed of the solutions we offer to our customers in our core operating geography,” said Bill Hunter, CEO of Momentum, in the press release.
• Apollo Global Management and BC Partners Acquires Environmental Services Business of GFL Environmental (March 2025, $5.6 Billion) – In March 2025, Apollo Global Management (NYSE:APO) and BC Partners acquired the Environmental Services Business of GFL (NYSE:GFL) for $5.6 billion. GFL is the fourth largest diversified environmental services company in North America, providing solid waste management, liquid waste management, and soil remediation services. GFL intended to use up to $3.75 billion of the net proceeds to repay debt, leaving an estimated $2.25 billion to purchase back shares for corporate purposes, according to a press release.⁵ “The transaction will allow us to materially deliver our balance sheet which will accelerate our path to an investment grade credit rating. A deleveraged balance sheet will provide ultimate financial flexibility to deploy incremental capital into organic growth initiatives and solid waste M&A and allow for a greater return of capital to shareholders through opportunistic share repurchases and dividend increases, while maintaining a targeted Net Leverage in the low 3’s,” said Patrick Dovigi, Founder and CEO of GFL, in the press release.

The Waste & Recycling sector has remained a dynamic space for investment and synergistic M&A while heightened regulatory scrutiny, particularly around antitrust, has introduced new complexities. With regulatory pressures easing under a more favorable administration, disciplined acquirers have seized opportunities for targeted growth through strategic investments and carve-outs.

To discuss the impacts of antitrust regulations, provide an update on your business, or learn about Capstone’s wide range of advisory services and Waste & Recycling M&A market knowledge, please contact us.

Matt Milone, Analyst, was the lead Market Intelligence contributor to this article.

Endnotes

1. Department of Justice, “Antitrust Division Releases 10-Year Workload Statistics Report,” https://www.justice.gov/archives/opa/pr/antitrust-division-releases-10-year-workload-statistics-report, accessed July 29, 2025.

2. IBISWorld, “Waste Collection Services in the US,” https://my.ibisworld.com/us/en/industry/56211/at-a-glance-for-banking, accessed July 28, 2025.

3. Audax Private Equity, “Audax Private Equity Announces Sale of Liquid Environmental Solutions,” https://www.audaxprivateequity.com/news/audax-private-equity-announces-sale-of-liquid-environmental-solutions, accessed August 12, 2025.

4. BusinessWire, “Momentum Environmental Announces Acquisition of The Environmental Service Group,” https://www.businesswire.com/news/home/20250520840096/en/Momentum-Environmental-Announces-Acquisition-of-The-Environmental-Service-Group, accessed July 24, 2025.

5. Green For Life Environmental, “GFL Environmental INC. Announces Agreement to Sell Environmental Services Business Valued at $8.0 Billion,” https://investors.gflenv.com/English/news/news-details/2025/GFL-Environmental-Inc.-Announces-Agreement-to-Sell-Environmental-Services-Business-Valued-at-8.0-Billion/default.aspx, accessed July 24, 2025.