The Amlon Group, a portfolio company of Heartwood Partners, has acquired Paragon Southwest Medical Waste and Music City Group.
The Amlon Group is provider of recycling, processing, treatment, and management of metal and non-metal bearing industrial and hazardous waste streams including earth, liquid, heavy metals and oxides.
Heartwood, through its $600 million third fund, invested in The Amlon Group in December 2021 in partnership with the company’s founders and senior management.
Paragon Southwest Medical Waste (now Baytown Medical Waste) is a based near Houston in Baytown, Texas and is a provider of medical waste processing services using pyrolysis technology. Pyrolysis is the thermal decomposition of materials at high temperatures and is different than incineration which burns waste with oxygen while pyrolysis heats waste without oxygen. Incineration produces mainly CO2 and water vapor along with potential air pollutants, while pyrolysis produces solid residues (char), liquids, and gases that can be used for energy recovery or other applications.
“Amlon’s strategic business expansion is driven by a vision to establish itself as a versatile provider of waste solutions,” said Mark Wayne, the president of Amlon. “Our latest facility, Amlon Baytown, specializes in the treatment of medical waste. It leverages an innovative, patented pyrolysis technology, which stands apart as an environmentally conscious alternative to traditional incineration methods. This thermal decomposition system offers superior eco-friendliness compared to incinerators. We are enthusiastic about offering customers a solution that not only addresses environmental concerns but also boasts sustainability and economic advantages over conventional incineration methods.”
Amlon’s other recent add-on was Music City Group, a Nashville-based provider of waste management services that specializes in both hazardous and non-hazardous by-products, co-products, and metal-bearing waste materials.
“The acquisition and integration of Music City Group is bringing us even closer to realizing our vision of becoming a market leader and provider of environmental solutions to a variety of industries,” added Mr. Wayne. “Music City’s unique high touch services utilize personal attention and strategic methods to create high-value recurring revenue customers. Their strong track-record in growth and environmental safety performance is unmatched.”
“We are thrilled with these strategic add-on acquisitions as Amlon realizes its potential,” said Demetrios Dounis, a partner at Heartwood. “Amlon continues to expand its footprint into other adjacent waste processing and recycling categories and end-markets with the goal of adding strategic benefits for its customers.”
Connecticut-based Heartwood invests in United States-based companies that have revenues from $30 million to $400 million and EBITDA between $5 million to $30 million. Sectors of interest include value-added distributors, food, chemical, consumer products, and business service companies.
Heartwood is currently investing through its fourth fund, Heartwood Partners Fund IV LP, which has not yet held a final close but is targeting $700 million of capital. The firm’s third fund, Heartwood Partners III LP, closed with $600 million of capital in September 2020. The Norwalk, Connecticut-based firm was founded as Capital Partners in 1982 and changed its name to Heartwood Partners in September 2020.
© 2023 Private Equity Professional | August 17, 2023