BGL’s Head of Services and Infrastructure Effram Kaplan and Director Jim Cocita coauthored an article for the September issue of Waste Advantage Magazine entitled, “Sustainability: A Key Growth Lever Helping Transform the Environmental Services Sector.”
The article examines how the favorable regulatory climate, governmental funding tailwinds, and sustainability imperative provide a foundation for defensible growth in the Environmental Services sector. Significant capital inflows are coming into the sector, resulting in high-level platform formation and add-on acquisition activity.
For all of Effram’s and Jim’s insights, including how sustainability is helping transform the sector, read the complete article on the Waste Advantage Magazine website.
Coalesce Capital is a private equity firm that partners with entrepreneurs and management teams to build enduring value around differentiated businesses. Coalesce has over $1.1 billion of regulatory assets under management and is dedicated to investing in human capital-driven and technology-enabled services companies. The firm’s growth-oriented investment philosophy centers around its conviction that people are the most important ingredient of value creation. Coalesce leverages its sector expertise, strategic resources and capital to collaborate with management teams to create shared success.
Brown Gibbons Lang & Company (BGL) is pleased to announce Coalesce Capital, a private equity firm focused on investing in business services companies, has signed a definitive agreement to acquire Miller Environmental Group (Miller), a leading provider of essential waste, industrial, and environmental services across the United States, from GenNx360 Capital Partners. BGL’s Environmental Services investment banking team served as the exclusive financial advisor to Coalesce Capital in the transaction. The specific terms of the transaction were not disclosed.
Miller operates an integrated network of 30 locations throughout the United States, with 22 field service branch locations augmented by a portfolio of 10-day transfer facilities and treatment, storage, and disposal facilities (TSDF’s) for waste processing. Coalesce Capital will support Miller’s next phase of growth through investments in human capital, technology, and add-on acquisitions to expand the Company’s branch and facility network and service to its customers.
BGL’s Services investment banking professionals have extensive M&A and capital markets experience, with deep knowledge in Environmental Services, Industrial & Infrastructure Services, Commercial & Residential Services, Professional Services, and Supply Chain & Logistics Services. Our Services team is deeply connected across the industries we serve, maintaining strong relationships with strategic and financial buyers around the globe.
To learn more about the state of waste management M&A, including how sustainability is accelerating investor appetite in the sector, download our most recent Environmental Services Insider.
Headquartered in Lexington, Kentucky, Waste Services of the Bluegrass is a leading regional solid waste management solutions provider serving residential, commercial, and industrial customers throughout Central Kentucky. The strategically located, city-owned transfer station supports the Company’s collection and hauling operations. Waste Services of the Bluegrass’ longstanding history of providing dependable service has enabled the Company to secure long-term contracts with municipalities and commercial customers in the region.
Brown Gibbons Lang & Company (BGL) is pleased to announce the sale of select assets of Waste Services of the Bluegrass (the Company) to Republic Services, Inc. (NYSE: RSG). BGL’s Environmental Services investment banking investment banking team exclusively advised Waste Services of the Bluegrass in the transaction. The specific terms of the transaction were not disclosed.
Headquartered in Lexington, Kentucky, Waste Services of the Bluegrass is a leading regional solid waste management solutions provider serving residential, commercial, and industrial customers throughout Central Kentucky. The strategically located, city-owned transfer station supports the Company’s collection and hauling operations. Waste Services of the Bluegrass’ longstanding history of providing dependable service has enabled the Company to secure long-term contracts with municipalities and commercial customers in the region.
BGL’s Services investment banking professionals have extensive M&A and capital markets experience, with deep knowledge in Environmental Services, Industrial & Infrastructure Services, Commercial & Residential Services, Professional Services, and Supply Chain & Logistics Services. Our Services team is deeply connected across the industries we serve, maintaining strong relationships with strategic and financial buyers around the globe.
To learn more about the state of waste management M&A, including how sustainability is accelerating investor appetite in the sector, download our most recent Environmental Services Insider.
The latest Transportation Insider from the Supply Chain & Logistics Services investment banking team at Brown Gibbons Lang & Company (BGL) examines the factors that will lead transportation service providers (TSPs) to broaden their service profile and modal approach, how government mandates will impact service providers, and the opportunities that exist for the domestic transportation sector.
The excerpt below takes a closer look at how new home construction trends impact the transportation sector.
New Home Starts Drive Demand for Transportation Services
In addition to shifting consumer purchasing preferences, the affordability of a new home, which is reflected in housing starts, has an outsized impact on transportation markets. It takes roughly 70 truckloads of freight per new home built—a huge amount of capacity demand for TSPs. Freight shipped to a new home build includes goods from all sectors of the economy, ranging from raw materials, aggregates, and heavy-duty machinery to white goods, furniture, fixtures, and consumables.
Moreover, these goods impact all parts of the supply chain, spanning from raw material inputs into manufacturing processes to finished goods required for home builds. Not only are there many truckloads of materials that need to travel to new home sites, but this process also involves multiple modes of trucking, including flatbeds transporting machinery and lumber, dry vans carrying flooring and windows, and last-mile providers in straight trucks transporting goods like furniture.
In addition to these over-the-road transportation service providers, other TSPs are involved in the coordination, transloading, storage, and, in some instances, sub-assembly or other value-added services that are dependent on consumer and industrial demand for goods.
Exhibit 4 illustrates the new home permits, starts and completions over the past five years, with a noticeable decline in new home starts for the past two years. A longer-term view of new housing starts (Exhibit 5) shows the total number of units started still lags the level achieved before the 2007 – 2009 financial recession.
Today’s inflated interest rate environment (Exhibit 6) exacerbates the housing shortage and its corresponding impact on transportation and logistics markets, as interest rates directly impact mortgage rates and the affordability of a new home, which in turn causes depressed levels of new home purchases. As long as the high- interest rate environment continues into the foreseeable future, we expect a continuation of soft demand to reduce interest in new home builds and negatively impact capacity demand for TSPs. Additionally, the lingering higher levels of inflation—as depicted by the Consumer Price Index—continue to curtail consumer spending.
For a more in-depth report on the transportation market, we recommend downloading the full 16-page report that analyzes more potential trends and opportunities in the TSP space.
Contact our Supply Chain & Logistics Investment Banking Team
Led by Craig M. Decker, BGL’s Supply Chain & Logistics Services team understands the challenges in the sector and helps clients to make the most of opportunities in the current marketplace. Please reach out via our contact form to learn more about our record of client success.
The report examines the factors that will lead TSPs to broaden their service profile and modal approach, how government mandates will impact service providers, and the opportunities that exist for the domestic transportation sector.
“While we recognize the pressure higher prices bring, supply chain disruptions coupled with a prolonged inflationary environment can create opportunities, especially as these factors are compounded by environmental and regulatory mandates, which we think will result in a new wave of M&A activity within the transportation, logistics, and supply chain sector,” said Craig Decker, Managing Director and lead banker for the Supply Chain & Logistics Services investment banking team at BGL.
Key takeaways include:
How the housing shortage, inflated interest rate environment, supply chain disruptions, and government mandates are impacting the transportation and logistics markets
The key factors that will lead to enhanced M&A activity across the sector
How TSPs can use acquisitions to create value-added capabilities
BGL’s Supply Chain & Logistics and Transportation teams have extensive experience across the sector and have developed deep relationships with key industry executives and private equity partners. BGL’s comprehensive understanding of the drivers shaping the transportation and logistics industry has resulted in the execution of numerous transactions in trucking and logistics, maritime and offshore, transportation infrastructure, supply chain, and passenger transport.
Please complete the form above to download your complimentary copy.
BGL Director Jim Cocita, who was named as one of Waste 360’s 40 Under 40 Award Winners for 2024, was interviewed in a recent article entitled, “Brown Gibbons Lang & Company’s Cocita Sees Sustainability as a Smart Investment.”
In the Q&A article, Jim discusses navigating the ins and outs of selling or acquiring a business. He expounds on the accelerating interest from investors in the environmental sector and how sustainability initiatives and the transition toward a circular economy are helping to drive activity.
To learn more about Jim and his recognition as one of the waste & recycling industry’s rising stars, read the complete article on the Waste360 website.
BGL Managing Director Owen Weihman is quoted in a recent article published by Infrastructure Investor entitled, “Regulators turn their gaze to data centres.”
The article discusses the potential for increasing regulatory involvement in data center development in the U.S. and abroad. With digital infrastructure mostly lacking the monopolistic tendencies that characterize energy and water utilities, policymakers have scrutinized the sector only intermittently. But there are signs that this is starting to change with data centers’ growing power requirements.
BGL Managing Director and Head of Services and Infrastructure Effram Kaplan was quoted in an article published by Waste Dive entitled, “Environmental services segment still has plenty of M&A runway.”
The article discusses how a recent stream of acquisition and investment activity by waste companies outside of the traditional MSW is poised to ramp up as other parts of the environmental services industry remain more fragmented. Effram says the interest in sustainability from customers and federal regulations around PFAS is leading companies to seek acquisitions that can more rapidly build scale and expand service capabilities into adjacent technologies and waste treatment categories.
For all of Effram’s insights, including what he expects in the environmental services industry over the next five years, read the complete article on the Waste Dive website.
