Information on the Target

Long Island Waste Services (LIWS) is a vertically integrated solid waste management company based on Long Island, New York. Founded in 2020, LIWS offers a broad range of services, including efficient waste collection, modern transfer stations, a materials recovery facility, and environmentally responsible disposal solutions. The company is dedicated to materials processing and the recycling of commodities, successfully recovering various recyclables such as cardboard, paper, metals, and construction materials for resale or alternative applications.

LIWS focuses on servicing commercial, residential, and industrial customers with a commitment to contributing positively to the communities in which it operates. The company prides itself on its community-first waste management model, emphasizing sustainability and responsible waste practices.

Industry Overview in the Target’s Specific Country

The solid waste management industry in the United States has experienced significant growth in recent years, driven by increasing environmental awareness and regulatory measures aimed at promoting recycling and waste diversion. As sustainability becomes increasingly important for businesses and consumers alike, the demand for efficient waste management solutions continues to rise.

In New York specifically, there is a strong push towards waste reduction and recycling initiatives as the state seeks to minimize landfill waste and promote sustainable practices. The state has enacted legislation mandating recycling programs and providing incentives for waste management companies to expand their services to include more sustainable solutions.

Long Island, as part of this statewide initiative, is expected to witness growth in the waste management sector due to heightened consumer demands for responsible waste_processing, as well as government support for recycling efforts. Local companies like LIWS are well-positioned to capitalize on these trends, given their focus on environmentally friendly practices.

As urbanization continues and population density increases, especially in metropolitan areas like Long Island, the need for effective and innovative waste management solutions will only amplify. Companies that can offer integrated services and a commitment to sustainability are likely to emerge as leaders in this evolving landscape.

The Rationale Behind the Deal

The investment in Long Island Waste Services by Tecum Capital and Patriot Capital seeks to capitalize on the growing demand for sustainable waste management solutions. By partnering with LIWS, the investors aim to support the company's ongoing expansion and enhance its capabilities. With a solid foundation from recent capital investments, LIWS is well-positioned for further growth in a rapidly evolving industry.

The recapitalization led by Terramont Infrastructure Partners represents a strategic move to strengthen LIWS’s operational capacity and market presence. The partnership with experienced management underscores confidence in the company’s operational excellence and growth trajectory.

Information about the Investor

Tecum Capital is a private investment firm headquartered in Pittsburgh, Pennsylvania, focused on investing in lower middle-market companies. With a mandate to provide both mezzanine debt and equity investments, Tecum has a keen interest in growth-oriented sectors, including environmental and industrial services. Tecum Capital manages two Small Business Investment Company (SBIC) licensed funds and has collectively invested over $1 billion across more than 160 platforms since its inception in 2006.

Led by partners Matt Harnett, Husnain Safdar, and Carter Henderson, Tecum is committed to creating value through partnerships with management teams and independent sponsors. The firm’s deep-rooted experience in the environmental services domain positions it well to support LIWS in its growth objectives.

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From an analytical perspective, the investment in Long Island Waste Services appears to be a promising opportunity, given the growing importance of sustainable waste management practices nationwide. The company's commitment to environmental responsibility and community engagement enhances its reputation, which could lead to increased customer loyalty and market share.

The robust management team, led by experienced leaders like Anthony Avellino, has a track record of growth and expansion through strategic acquisitions. This positions LIWS favorably for future opportunities as it continues to integrate and streamline operations while expanding its service offerings.

Furthermore, the favorable regulatory environment in New York, coupled with an increasing consumer focus on sustainability, provides a supportive backdrop for LIWS’s growth strategy. This makes Tecum's backing of LIWS not only timely but also strategically aligned with industry trends.

In summary, the partnership between Tecum Capital and LIWS, combined with the strong local demand for responsible waste management services, is likely to yield positive returns as both entities work collaboratively towards achieving shared goals and fostering sustainable growth.

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