E360S now majority-owned by BlackRock

Aurora, Ontario, Canada-based Environmental 360 Solutions Inc. (E360S) is now majority owned by a group of investors led by BlackRock Alternatives, according to a news release from E360S and BlackRock. Financial terms of the transaction were not disclosed.

E360S, which describes itself as a vertically integrated provider of waste management, environmental and recycling/circular economy services, says it has some 30,000 Canadian municipal, commercial and industrial customers.

The acquisition was made through a fund managed by BlackRock’s Diversified Infrastructure business. After its completion, Donato (Danny) Ardellini, the founder and CEO of E360S, will “continue in his leadership role at E360S and will maintain his significant ownership stake,” say the companies.

“This partnership with BlackRock is a significant milestone for E360S and represents the next stage of the company’s evolution,” says Ardellini. “We now have over 1,500 dedicated employees across five provinces in Canada and over 30,000 customers. BlackRock’s investment is a reflection of the hard work of all of our employees—without them, our continued success would not be possible.”

Continues Ardellini added, “Having founded the company, it was important to me that we partner with an organization with the same strong values as E360S as we sought resources to support our growth. It was clear at our first meeting with the BlackRock team that they would be a great fit with the culture that has been established at the company, and I welcome their partnership as we continue to deliver against our strategy to build a leading, integrated North American provider of solid waste and environmental services.”

Mark Florian, global head of diversified infrastructure at BlackRock, remarks, “E360S provides critical, non-discretionary services that generate resilient cash flows, supported by contracts with inflation escalators. The company’s infrastructure, key permits and scale alongside increasingly stringent regulation result in substantial barriers to entry. We look forward to partnering with Danny and E360S’s highly experienced management team to support the company’s ongoing growth.”

BlackRock says it has acquired equity interests from prior E360S institutional investors, including Toronto-based Almada Inc., the Ontario Public Service Employees Union (OPSEU) Pension Plan Trust Fund, and Los Angeles-based Oaktree Capital Management LP. “One of E360S’s early investors, [the Toronto-based] Canadian Business Growth Fund, increased its existing equity position as part of the transaction,” according to BlackRock.

“We are excited to invest on behalf of our clients in a company with the entrepreneurial spirit and growth trajectory of E360S,” says Adi Blum, managing director of the BlackRock Diversified Infrastructure fund. “In addition to capital, BlackRock will provide E360S with the right strategic support to achieve its growth plans. There is significant white space to grow the company’s sustainability and circularity services, as well as continuing to grow in traditional solid waste and environmental services." 

Toronto-based BMO Capital Markets acted as financial advisor and Toronto-based Miller Thomson LLP served as legal advisor to E360S in connection with the transaction. Toronto-based RBC Capital Markets acted as financial advisor and Toronto-based Blake, Cassels & Graydon LLP served as legal advisor to BlackRock.

BlackRock manages $318 billion in what it calls alternative investments and commitments on behalf of clients worldwide as of year-end 2022. Last year, a different BlackRock business unit purchased Vanguard Renewables, a Massachusetts-based organics-to-renewable energy provider.

E360S operates from locations in the Canadian provinces of Alberta, British Columbia, Ontario and Quebec. The company is only a few years old, having grown in part via acquisitions such as the 2018 purchase of Can Pak Environmental Inc.