Denali Water Solutions acquires Organix Recycling

Denali Water Solutions LLC, Russellville, Arkansas, announced that it has signed a definitive agreement to acquire Organix Recycling LLC. According to Denali, Organix is the largest preconsumer food waste collector and recycler in the United States.

Organix, based in Mokena, Illinois, provides food waste management solutions through which collected food waste is converted into livestock feed, compost and green energy products like biogas.

The financial terms of the transaction were not disclosed.

“Our purpose is to make the world a better place by handling waste responsibly. Bringing the Organix team onboard at Denali supports our goal to expand and diversify our offering with the leading sustainable waste management services in every vertical across the United States,” Andy McNeill, CEO of Denali Water Solutions, says. “Like Organix, we’ve built a culture centered on growth, development and sustainability, and we look forward to welcoming the Organix team to the Denali family.”

“We are excited to join Denali Water Solutions to create the largest sustainability-focused organic residuals management company in the United States,” Aren LeeKong, executive chairman of Organix Recycling LLC, says. “For over a decade, the Organix team has been committed to working with our partners to provide sustainable solutions that protect and improve the environment and our communities. Joining forces with Denali is consistent with our values, vision and goals. This merger will allow us to continue our mission and provide an enhanced offering to new and existing customers. We are excited for the future.”

TPG Growth, the middle market and growth equity platform of San Francisco-based alternative asset firm TPG, announced back in January 2020 that it has signed a definitive agreement to acquire Denali Water Solutions.

Ransom Langford, partner at San Francisco-based TPG, says, “We invested behind Andy and the Denali team because they recognized the growing demand for sustainable waste management solutions and shared our conviction that the best way to meet the opportunity was to scale their best-in-class business through a combination of organic growth and strategic acquisitions. Organix is the perfect complement to Denali’s existing offering and we look forward to working with management to integrate the teams and continue to execute on our long-term growth strategy.”

The Organix deal represents the seventh acquisition by Denali in the past six months. In the last few months, Denali acquired Veris Environmental, a Colorado-based residuals management services company; AWS Dredge, a Utah-based service provider to hard rock mines in the western U.S.; New Earth, a Texas-based composting company; Madden Brothers, an Ohio-based composting company; Recyc Systems, a Georgia-based residuals management company; and Jesse Barro, a Pennsylvania-based residuals management company.

Goldman Sachs & Co. LLC, New York, is acting as financial advisor to Organix on the transaction and Kirkland & Ellis LLP, Chicago, is acting as legal counsel.