Target Company Overview

Long Island Waste Services (LIWS) is a vertically integrated solid waste management company based in Long Island, New York. Established in 2020, LIWS offers a comprehensive suite of services that includes efficient waste collection, state-of-the-art transfer stations, a materials recovery facility, and environmentally responsible disposal methods. The company is dedicated to materials processing and commodities recycling, focusing on recovering recyclable materials such as cardboard, paper, metals, and construction materials for resale or alternative uses.

Industry Overview

The waste management industry in the United States has seen exponential growth, particularly in New York, where demand for sustainable waste solutions continues to rise. As cities increase their recycling mandates and policies aimed at reducing landfill waste become more stringent, companies that can offer innovative recycling and waste reduction strategies stand to benefit significantly.

In Long Island specifically, the growing population and increasing urbanization have led to a greater need for solid waste management services that are efficient and compliant with environmental regulations. The region is home to various waste management providers, but LIWS distinguishes itself through its local presence and commitment to community engagement.

The state’s robust recycling infrastructure has paved the way for companies like LIWS to thrive by adapting to changing consumer preferences focused on sustainability. Additionally, advancements in technology are streamlining waste collection and processing, further enhancing market competitiveness.

Overall, the industry's outlook remains positive, driven by increasing environmental awareness and governmental support aimed at achieving zero waste goals. This positions waste management firms favorably in the market, particularly those, like LIWS, that prioritize comprehensive and responsible waste solutions.

Rationale Behind the Deal

The recent recapitalization of Long Island Waste Services, facilitated by Tecum Capital and Patriot Capital, aims to support the company's expansion and growth into new markets. Partnering with reputed firms like Terramont Infrastructure Partners and leveraging expert advisory services signifies a strategic alignment focused on enhancing LIWS’s operational capacity and service offerings.

This investment not only underscores confidence in LIWS’s strong management team, led by President and CEO Anthony Avellino, but also highlights the firm’s potential for future growth, especially given its recent successes in acquiring other waste management companies and expanding its service capabilities.

Information About the Investor

Tecum Capital is a private investment firm based in Pittsburgh, Pennsylvania, known for investing in lower middle-market companies across various sectors, including environmental and industrial services. With a robust portfolio and over $1 billion invested since its founding in 2006, Tecum Capital is adept at providing tailored mezzanine debt and equity to support growth-oriented businesses.

With two Small Business Investment Company (SBIC) licensed funds under management, Tecum remains committed to creating shared success with its partners. The firm's experience investing in the waste and environmental service sectors equips them with valuable insights into the dynamics of this industry, making them a strong ally for LIWS’s future initiatives.

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The investment in Long Island Waste Services by Tecum Capital appears to be a strong move poised to capitalize on the growing demand for waste management solutions in New York. With the waste management industry enjoying favorable economic conditions and regulatory support, LIWS is well-positioned to take on new opportunities and grow its market share.

The experienced management team, particularly Anthony Avellino, brings a wealth of knowledge and operational expertise, crucial for navigating industry challenges and ensuring sustainable growth. Tecum's backing reflects confidence in LIWS’s strategic direction and operational capabilities.

Additionally, the alignment with Terramont Infrastructure Partners and Patriot Capital enhances the financial and strategic support available to LIWS, which is essential for achieving its ambitious growth plans. This collaborative approach can foster innovation and operational efficiencies that further solidify LIWS's market standing.

Given these factors, the investment in LIWS could yield considerable returns for Tecum Capital and its stakeholders, validating the decision as an astute investment in a promising, high-growth industry.

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