Dive Brief:

• Macquarie Asset Management announced Thursday that one if its funds has acquired Washington-based DTG Recycle, a large C&D recycler. Financial terms were not disclosed.
• DTG describes itself as the “largest privately held vertically integrated non-MSW recycling business” in Washington, with more than 500 employees, 3,900 containers, 270 vehicles, 12 MRFs and one landfill.
• The transaction will not change DTG’s current operations, with CEO Tom Vaughn staying in his role. Dan Guimont, DTG’s founder and former president, will become chief development officer.

Dive Insight:

Investment from Macquarie, the world’s largest infrastructure manager, signals a waste or recycling company has become a major player in its market.

This investment is poised to accelerate a period of rapid growth for DTG in the Washington region. “DTG’s leadership in non-municipal solid waste recycling and focus on a diversion-led business model positions it well to meet the sustainability expectations of the communities in which DTG operates,” said Karl Kuchel, CEO of Macquarie Infrastructure Partners, in a statement. “We look forward to partnering with the DTG management team to support the next stage of DTG’s growth.”

Guimont founded DTG in 1999 when he acquired a C&D recycling business from Vaughn, according to a 2020 Waste Today profile. Vaughn later joined the company and the two have expanded it ever since. They will now be members of DTG’s board of managers and retain an ownership stake in the company, according to Macquarie. 

“We are excited to partner with Macquarie Asset Management through this investment into DTG. With their deep knowledge of the space and their track record of providing ongoing capital and dedicated support to management teams, we will be able to accelerate our growth both within our existing area of operations and into adjacent geographies,” said Vaughn in a statement.

Clairvest Group, which led a $32 million minority growth equity financing round in 2020, has exited its position in DTG as part of the broader recapitalization deal. Clairvest reported proceeds of $53.2 million from the transaction.

“Our partners not only demonstrated sustainability leadership in the Pacific Northwest, but fostered a culture of safety first, operational excellence, growth and innovation,” said Michael Castellarin, managing director at Clairvest, in a statement. “We are honored to have been partners in DTG’s success since 2020 and we are excited for DTG to continue its growth in the evolving environmental services landscape in the Pacific Northwest.”

According to Clairvest, DTG completed 10 acquisitions and started multiple greenfield projects during this time period. This included companies throughout the broader Puget Sound region, with Olympic Organics and Cascade Recycling among DTG’s latest transactions.

A representative for Macquarie said future expansion plans could focus on the broader Pacific Northwest region, though DTG’s focus “continues to be non-MSW recyclables including construction and demolition, manufacturing and commercial and industrial waste streams.” DTG also offers organics recycling, street sweeping and portable restroom services.

Sources indicate DTG will be in Macquarie’s MIP VI fund. Macquarie’s other active investments in the U.S. waste sector include GreenWaste in California, LRS in Illinois and WIN Waste Innovations in New Hampshire. Prior investments include GFL Environmental, as well as former companies Waste Industries and WCA.