Chicago Recycling Firms Merge

Lakeshore Waste Services and Recycling Systems Inc. (RSI) have merged, creating a newly formed company called Lakeshore Recycling Systems LLC. (LRS) The private equity firm Tensile Capital Management, based in San Francisco, provided the financing. Additionally, Comerica Bank provided the debt financing for the deal. Livingstone Partners acted as the financial advisor to the two companies.

LRS, with primary operations in the Chicago area, describes itself as a diversified waste services company providing commercial, residential, recycling and roll-off collection services to commercial and municipal customers. According to Livingstone, LRS owns and operates the largest material recovery facility (MRF) in Illinois, processing nearly 1 million tons of material per year.

“We are confident that our people and our assets, coupled with the expertise and capital from our new partners, will allow us to rapidly expand from our combined position as a top three independent in Chicagoland,” says Josh Connell, CEO of Lakeshore.

“RSI is pleased to be joining forces with Lakeshore,” says Jerry Golf, RSI’s president.

“The merger of Lakeshore and RSI creates a formidable player in the Chicago waste market,” says Doug Dossey, Tensile’s managing partner. “The company’s recent success in the municipal markets, including a steadily growing relationship with the City of Chicago, bodes well for its long-term growth trajectory and creates an ongoing need for the type of flexible capital that Tensile can provide.”

Steve Miles, a partner with Livingstone, adds, “We are thrilled to have helped forge the relationship between Lakeshore and RSI and secure growth capital to accelerate LRS’ platform expansion. We believe the creation of LRS is illustrative of the types of transactions smaller independents in the waste management industry must pursue in the face of an increasingly consolidated and capital-intensive marketplace.”