Waste & Recycling Market Update – February 2022

M&A Accelerates Amid Elevated Waste Volumes

Capstone Partners released its February 2022 Waste & Recycling Market Update, reporting that pandemic tailwinds, including the resurgence of per capita income and business activity, are expected to elevate waste volumes and provide a favorable outlook for the sector in 2022. In addition, consumer spending, which accounts for two-thirds of U.S. economic activity, is expected to remain high, supported by wage growth and ample savings, and bolster waste and recycling demand.

Waste & Recycling Market Merger and Acquisition Activity Has Surged

Construction and manufacturing activity have also trended upwards, supplementing healthy waste volumes. In addition, recycled material volumes are rising, driven by increased consumer awareness and environmentally-friendly policies in certain regions of the U.S. Growing demand for recycling services and circular economy solutions represent a promising opportunity for sector participants. Despite the favorable demand backdrop, the labor shortage is expected to challenge sector participants as elevated waste volumes drive overtime costs higher.

Also included in this report:

• How the proliferation of circular economy measures present opportunities for innovative, environmentally-minded companies.
• Performance and growth strategy insights from leading players’ Q3 2021 earnings calls.
• A client case study, highlighting the Capstone-advised sale of Pioneer Recycling Services to Delos Capital and The Silverfern Group.

The expert investment banking professionals on Capstone Partners’ Waste & Recycling Team work with leading middle market companies operating in the Waste & Recycling market to advise with their strategic decision-making in order to maximize financial outcomes at every stage of the business lifecycle.  Our firm has developed a full suite of corporate finance solutions, including M&A advisory, debt advisory, financial advisory, and equity capital financing to help privately owned businesses and private equity firms address any need, ranging from growth and financial or operational advisement to an ultimate exit transaction.  To learn more about the contents of this report, or about the benefits of starting a relationship with our Waste & Recycling Investment Banking Team, contact us.