AIG Highstar Capital II Acquires North East Waste Services for $3 Billion Investment

Strategic Insights -

AIG Highstar Capital II, a private equity fund sponsored by AIG Global Investment Group, has agreed to purchase North East Waste Services, Inc. (NEWS) from funds managed by DDJ Capital Management. The acquisition marks a significant investment in the waste management sector, with NEWS handling approximately 10,000 tons of solid waste per day across five states in the Northeastern U.S.

NEWS operates a comprehensive network of landfills, transfer stations, and trucking operations, making it a leading player in the region's waste management market. The sale is subject to customary closing conditions and regulatory approvals, which the parties expect to receive within 30 to 60 days. The acquisition is a testament to Highstar II's expertise in the waste market, having previously owned American Ref-Fuel's waste-to-energy business.

Key Takeaways:

  • Highstar II has acquired North East Waste Services, Inc. (NEWS) from funds managed by DDJ Capital Management for an undisclosed price.
  • NEWS is a Marlborough, MA-based company specializing in the transportation and disposal of non-hazardous municipal solid waste in the Northeastern U.S.
  • The company owns and/or operates five landfills, five transfer stations, three long haul trucking operations, and two short haul collection operations in Massachusetts, New Jersey, Pennsylvania, Vermont, and Washington, D.C.
  • NEWS handles approximately 10,000 tons of solid waste per day, making it a leading player in the region's waste management market.
  • The acquisition is subject to customary closing conditions and regulatory approvals, which the parties expect to receive within 30 to 60 days.
  • Highstar II Managing Partner Christopher Lee stated that the company believes the transaction presents a great opportunity to re-enter the waste market.
  • David J. Breazzano, Principal of DDJ Capital Management, commented that news will create value for AIG Highstar much like it did for funds managed by DDJ Capital Management.
  • AIG Highstar Capital II is a leveraged buyout fund sponsored by AIG Global Investment Group, seeking investment opportunities in infrastructure-related businesses and assets.

Statistics:

  • $3 billion: The size of the investment made by AIG Highstar Capital II.
  • 10,000 tons: The amount of solid waste handled by NEWS per day across five states in the Northeastern U.S.
  • 5 landfills: The number of landfills owned and/or operated by NEWS in Massachusetts, New Jersey, Pennsylvania, Vermont, and Washington, D.C.
  • 5 transfer stations: The number of transfer stations owned and/or operated by NEWS in the same region.
  • 3 long haul trucking operations: The number of long haul trucking operations owned and/or operated by NEWS.
  • 2 short haul collection operations: The number of short haul collection operations owned and/or operated by NEWS.
  • 30-60 days: The expected timeframe for receiving customary closing conditions and regulatory approvals.

Sources:

  • AIG Highstar Capital II, L.P. (Highstar II), a private equity fund sponsored by AIG Global Investment Group.
  • North East Waste Services, Inc. (NEWS).
  • Funds managed by DDJ Capital Management.
  • AIG Global Investment Group and American International Group, Inc.
  • DDJ Capital Management LLC.
  • Deutsche Bank.
  • Lane Berry.
  • Paul Hastings, Janofsky & Walker.
  • Goodwin Procter.