Macquarie makes major investment in LRS

LRS, an independent waste diversion, recycling and portable services provider based in Morton Grove, Illinois, announced Sept. 9 that it has completed a significant equity investment to accommodate and scale its growth. The investment was made by Macquarie Infrastructure Partners (MIP) V, an Americas-focused, $6.9 billion unlisted infrastructure fund managed by Sydney-based Macquarie Asset Management (MAM). Financial terms were not disclosed.

According to LRS, the resulting ownership structure will accelerate the company’s growth trajectory and solidify its leadership position as the largest privately held waste, recycling and portable services provider in the Midwest and one of the largest in North America. Additionally, the company says the investment will have no impact on its existing services, operations or executive leadership team.

“At this juncture in our corporate evolution, we couldn’t be more delighted to receive this sizeable investment from MIP V," LRS CEO Alan Handley says. "With their deep knowledge of the space and the capital and support dedicated to our team, we will be an even more disruptive force in the waste and recycling industry. This partnership will propel our competitive leadership position throughout the Midwest, enable future-focused investments in technological innovation and allow us to continue our rapid growth both organically as well as through M&A.” 

Under the banner of the MIP series of funds, MAM-managed funds have invested over $2.9 billion in the waste industry in the Americas since 2007, including investments in Waste Industries, WCA, GFL Environmental, WIN Waste Innovations, Solví and now LRS.

“We are excited to partner with Alan and the rest of the LRS management team in supporting their next stage of growth. MAM has significant experience supporting waste businesses like LRS and invests in people, processes and systems to strengthen existing platforms, support future growth and improve performance,” Paul Mitchener, senior managing director of MAM, says.

The investment follows a year of aggressive growth for LRS, as evidenced by the acquisition of 12 waste, recycling and portable toilet companies in Illinois, Wisconsin, Michigan, Indiana, Minnesota and Iowa. Additionally, the company has experienced significant organic growth through being awarded numerous large municipal contracts, including the entire city of Chicago’s Blue Cart recycling contract.

Since its formation in 2013, LRS has grown from a single location with 200 employees and annual revenues of less than $50 million to a $375 million regional leader in waste diversion and recycling. Handley said LRS’ rapid rise has helped the company compete in municipalities and states throughout the greater Midwest, and the company will continue to seek best-in-class acquisition opportunities.

Goldman Sachs, New York City, served as lead investment banker on the deal; Much Shelist, Chicago, provided legal representation; and Capstone Partners, Boston, led financial advisory services for LRS.

J.P. Morgan, New York City, acted as exclusive financial advisor to MIP V, and White & Case, New York City, acted as legal counsel.