SEER sells Texas medical waste company

Strategic Environmental & Energy Resources Inc. (SEER), a Broomfield, Colorado-based provider of environmental, renewable fuels and industrial waste stream management services, has announced the sale of its Texas affiliate, Paragon Southwest Medical Waste (PSMW). The sale formally closed on June 30. The company’s majority-owned subsidiary, Paragon Waste Management (PWS), will continue to operate as a SEER entity.

PSMW was founded in November 2017 and commissioned in February 2018 as a joint venture between SEER, Paragon and a group of Texas investors. Following the consolidation of business activities between PSMW and Paragon in June 2022, a private equity firm associated with The Amlon Group began acquisition discussions with PSMW and purchased the Texas operation and its consolidated business.

The acquisition was a stock transaction whereby PSMW will own a portion of the equity of the acquiring entity, Amlon Holdings LLC. Amlon Holdings was valued at approximately $140 million at close and has or is currently acquiring several complementary assets in the hazardous waste, medical waste and chemical waste industries, one of which is PSWM.

PSWM will now operate under the name Baytown Medical. PSMW will be retained by the original shareholder group (including SEER) and PSMW is now the “aggregator entity” that holds the interest in Amlon Holdings. SEER’s interest in PSWM currently translates to approximately 2 percent of Amlon Holdings.

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Using Paragon’s medical waste treatment technology, Amlon Holdings now plans to continue the national rollout of medical waste treatment facilities to enhance the overall value of Amlon Holdings. Neither Paragon nor PSWM will retain any management positions in the new entity.

According to SEER, the driver for the transaction was the result of the need to consolidate the North American market and the continued desire of customers to transition away from incineration as part of their sustainability programs.

“Being part of Amlon Holdings will now allow the entity to fund and implement the expansion plans Paragon had developed to grow the business nationally and, ultimately, SEER and its shareholders will benefit,” says Fortunato Villamagna, former CEO of PSMW and PWS.

“Our unprecedented environmental performance and unparalleled value of our service to our customers has distinguished PSMW as the most effective alternative for thermal destruction of medical waste and this is why it became the target of Amlon Holdings,” says John Combs III, CEO of SEER. “The transition teams have been working for a few months to seamlessly move existing customers as well as begin the business development process for the additional capacity that will be added to the Baytown facility.

“With Amlon Holding’s track record in waste handling and treatment, together with their financial strength, we are all confident Amlon Holding’s management will be able to effectively leverage the proven superiority and operating history of the underlying Paragon technology for the benefit of all the equity holders, including SEER,” Combs adds.