Mergers & Acquisitions

Ratto Group sells operations to Recology

The Ratto Group, Santa Rosa, California, is selling all of its North Bay Corp. operations to San Francisco-based Recology. The multimillion-dollar deal includes waste and recycling services in eight of Sonoma County’s nine cities and in parts of north Martin County. The deal also includes Ratto’s Santa Rosa recycling facilities, trucks and 440 employees.

The deal came after The Ratto Group faced $14 million in fines from Santa Rosa for alleged violations of its contract and permit violations at its recycling facility on Standish Avenue.

The decision also was made after the sons of James Ratto, owner of the Ratto Group who is in declining health, revealed they weren’t interested in furthering their father’s operation.

The group’s largest contract is worth $27 million annually and covers curbside collections for 55,000 homes and business throughout Santa Rosa. It will expire at the end of this year.

Terms of the deal were not disclosed.

One of the two Standish Avenue facilities reportedly has been shut down for renovations since November 2016, and Recology says it plans to use both facilities to process recyclables.

Following the announcement a $2 million settlement was reached with Ratto over alleged contract violations, which include the use of old garbage trucks, failing to register street sweepers and maintaining a record of poor customer service.

The payment is only part of the $18 million the company owes the city in fines. The violations came forth in a 2016 audit, and the company did not admit any faults in its settlement.

The Ratto Group already has paid $750,000 and is expected to pay the rest of the settlement in two installments in May and August.

Santek Waste Services makes two acquisitions

Building upon its recent acquisitions in the North Atlanta and Houston markets, Santek Waste Services LLC, Cleveland, Tennessee, has acquired Bates Sanitation Inc., Holly Springs, Georgia, and Major Waste Services, Conroe, Texas.

Effective March 1, the transactions included all of Bates Sanitation’s residential customers in Cherokee County, Georgia, and all of Major Waste’s residential customers in Montgomery and San Jacinto counties in Texas.

Santek Chief Business Development Officer Edward Caylor says the recent purchases boost the company’s platform for growth in the north Atlanta and Houston markets.

“Our goal this year has been focused on expanding our waste collection efforts in markets where we’re committed to building a solid and promising presence,” Caylor says. “As we continue to expand upon our footprint, we’re actively seeking more independent haulers who have an interest in selling their companies.”