Rizzo Environmental Services, a portfolio company of Kinderhook Industries, has acquired V&M Corporation (dba Royal Oak Recycling). The acquisition of Royal Oak represents the 15th environmental services transaction completed by Kinderhook.
Royal Oak Recycling is a recycler of paper, plastic, and metal materials. The company’s service offerings include collection, sorting, and processing of paper, plastic, and metal materials. Royal Oak Recycling was founded in 1935 and is based near Detroit in Royal Oak, MI (www.royaloakrecycling.com).
“The acquisition of Royal Oak will launch Rizzo into the recycling market with significant scale. We look forward to partnering with the Royal Oak management team and getting the opportunity to leverage their recycling industry expertise to help Rizzo expand its service offerings in the recycling sector,” said Rob Michalik, Managing Director of Kinderhook Industries.
Rizzo Environmental Services is a Southeast Michigan provider of curbside collection services for municipal solid waste as well as commercial collection services. The company provides curbside collection for municipal solid waste, recycling, and compost to municipalities throughout Southeast Michigan and currently services 31 municipalities in three counties. Rizzo Environmental Services is headquartered near Detroit in Sterling Heights, MI (www.rizzoservices.com).
“Royal Oak’s longstanding customer relationships and exceptional management made this acquisition very attractive for Rizzo,” said Cor Carruthers, Managing Director at Kinderhook Industries. “The acquisition of Royal Oak enables Rizzo to further diversify its service offerings and thus control more of its collected waste stream.”
Kinderhook Industries makes control investments in companies with transaction values of $10 million to $75 million in which the firm can achieve financial, operational and growth improvements. The firm pursues private equity investments in non-core divisions of public companies, management buyouts of entrepreneurial-owned businesses, troubled situations and existing small capitalization companies lacking institutional support. The firm, founded in 2003, has $770 million of committed capital and is based in New York (www.kinderhook.com).
Financing for the transaction was provided by Comerica Bank. Kirkland & Ellis served as legal counsel to Kinderhook and Rizzo.
© 2013 PEPD • Private Equity’s Leading News Magazine • 11-8-13
