Alternative assets giant Macquarie Infrastructure and Real Assets, the world’s largest infrastructure asset manager with $132 billion in global AUM, announced on Thursday that it will sell waste management firm WCA Waste Corporation for $1.2 billion. The buyer is Canadian waste solutions and infrastructure firm GFL Environmental.
MIRA’s MIP II closed end fund had acquired WCA, which provides solid waste collection, transfer, disposal and recycling across 11 states in the U.S. South, in a take-private transaction in 2012.
Since going private, WCA has strategically sold several non-core assets and completed more than 35 other acquisitions deemed accretive to its core market.
During its time as an MIP II portfolio company, WCA also expanded its focus on ESG and sustainability measures, such as expanding its fleet of CNG-fueled vehicles and new initiatives in ground contamination, or leachate, management.
In a statement Karl Kuchel, CEO of Macquarie Infrastructure Partners, said: “During our approximately eight-year investment, WCA has grown to become one of the leading vertically integrated solid waste companies in the U.S. Working alongside the management team at WCA, we are proud to have supported the company in its mission to provide safer, more efficient and sustainable environmental solutions to its more than 700,000 customers.”
In March, shares of GFL Environmental went public in New York and Toronto in a volatile market debut, despite tepid investor enthusiasm that resulted in the IPO being repriced below the initial target range.
The company went on to post record second-quarter revenues, defending against a decline in commercial waste collection and recycling volumes as a result of covid-19 lockdown measures, particularly in its home market of Canada.
It also announced the acquisition of a portfolio of vertically integrated waste management companies—serving another 10 U.S. states—from two of its primary competitors in the U.S. market, Waste Management and Advanced Disposal Services.
As for Macquarie, AltAssets news reported earlier this week that Macquarie Infrastructure & Real Assets has raised closed to $4 billion for its latest flagship fund, which is expected to focus on North American infrastructure targets.
