Information on the Target

5280 Waste Solutions, LLC, founded in 2012 and based in Denver, Colorado, has established itself as a prominent provider of roll-off and commercial waste management services within the greater Denver metro area. The Company specializes in construction and demolition (C&D) waste removal while actively expanding its service offerings into residential and commercial sectors. Renowned for its responsive customer service and operational efficiency, 5280 has garnered a strong reputation and trust within Colorado's waste management industry.

Under the leadership of Jeff R. Kendall, Partner at Laurel Mountain Partners and CEO of 5280, the Company is poised for significant growth. With a foundation built on solid performance in the C&D segment, 5280 sees compelling opportunities to broaden its commercial and residential service lines while reinforcing its dominance in the Denver market.

Industry Overview in the Target’s Specific Country

The waste management industry in the United States, particularly in Colorado, has evolved significantly in recent years, driven by increasing environmental awareness and regulatory changes. The demand for effective waste management services has surged as municipalities and businesses seek sustainable solutions for waste disposal and recycling. As a result, companies focusing on innovative waste management practices, like 5280, are well-positioned to capture market share.

In Colorado, waste management services have been adapting to the growing population and robust economic development in urban areas. This shift highlights the necessity for efficient waste disposal systems, emphasizing the importance of specialized operators who can effectively manage particular waste streams, such as construction and demolition debris.

Additionally, with the ongoing push for sustainability, companies within this sector are increasingly integrating recycling processes into their operations. This trend aligns with the objectives of waste management providers like 5280, allowing them to offer comprehensive waste solutions while catering to both commercial and residential clients.

The Colorado waste management market demonstrates promising growth potential, especially as cities continue to implement greener initiatives and residential and commercial projects escalate. Enhanced partnerships within the industry, such as those between Tecum Capital, Laurel Mountain Capital, and 5280, will leverage shared expertise and resources, enabling them to capitalize on these growth opportunities.

The Rationale Behind the Deal

The investment by Tecum Capital, alongside Laurel Mountain Capital and Comerica Bank, focuses on a majority recapitalization that aims to align with the ambitious growth strategy of 5280 Waste Solutions. With the backing of experienced partners, 5280 plans to enhance its service offerings and extend its market presence.

The collaboration supports the Company in navigating its strategic growth objectives, particularly in expanding service lines and increasing operational efficiency, which is critical in a competitive industry characterized by robust demand.

Information About the Investor

Tecum Capital, a private investment firm headquartered in Pittsburgh, Pennsylvania, specializes in deploying capital in lower middle-market companies across various sectors, including environmental and industrial services. The firm focuses on providing mezzanine debt and equity investments and has a strong track record, having collectively invested over $1 billion in more than 160 platforms since its inception in 2006.

Recently, Tecum launched Tecum Capital Partners III, L.P., a $305 million fund aimed at growth-oriented middle-market companies. The firm prioritizes collaboration with independent sponsors, family offices, and management teams to facilitate shared success and drive value creation.

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The investment in 5280 Waste Solutions by Tecum Capital and its partners presents a promising opportunity given the growing demand for waste management services, particularly in urban regions like Denver. The Company's established reputation and ongoing expansion into diversified service lines position it well for future growth.

From an investment perspective, 5280's strong cash flow and strategic operational plans mark it as an ideal candidate for capital infusion. The involvement of established partners such as Laurel Mountain Capital and Comerica Bank underscores the deal's strategic soundness, leveraging their expertise in environmental services to support 5280's objectives.

Moreover, the anticipated growth within the waste management sector, fueled by increased environmental regulations and sustainability initiatives, provides a robust framework for investment. Tecum Capital's focus on partnering with skilled management teams aligns perfectly with 5280's leadership, which enhances confidence in the Company's growth trajectory.

Given these positive indicators, the investment in 5280 Waste Solutions appears to be a strong move within Tecum's broader strategy, reflecting its commitment to capitalize on the evolving landscape of waste management services.

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