Arcapita sells Waste Harmonics to TPG for over $650 million

The sale of Waste Harmonics marks one of Arcapita’s most successful exits to date and is a testament to the firm’s strong investment strategy

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Over a three and a half year holding period, Waste Harmonics’ annual revenue almost quadrupled to $400 million. — Supplied photos
Over a three and a half year holding period, Waste Harmonics’ annual revenue almost quadrupled to $400 million. — Supplied photos

Published: Mon 2 Oct 2023, 2:58 PM

Last updated: Mon 2 Oct 2023, 2:59 PM

Arcapita Group Holdings Limited (Arcapita) announced that it has sold Waste Harmonics, a technology-enabled service provider of waste management solutions, to Keter Environmental Services, a leading recycling and waste management company. Keter is backed by TPG, a leading global alternative asset management firm.

The value of the deal is over $650 million, according to sources who are aware of the transaction.

“Waste Harmonics is one of our most successful exits to date and provides further validation of our investment strategy which focuses on acquiring tech-enabled businesses across defensive sectors with strong growth potential. We are pleased to have supported Waste Harmonics in its journey and are proud of what we have accomplished through this partnership,” Atif A. Abdulmalik, Arcapita’s chief executive officer, said.

Atif A. Abdulmalik, Arcapita’s chief executive officer.
Atif A. Abdulmalik, Arcapita’s chief executive officer.

Arcapita’s exit of Waste Harmonics follows a holding period of approximately three and a half years during which the Company’s revenue nearly quadrupled and is now approaching $400 million. Over this period, Arcapita worked closely with the Waste Harmonics management team, focusing on a range of growth initiatives such as cross-selling, leveraging the Company’s nationwide presence to secure additional client locations, and winning new accounts.

“There has been a growing need for more cost-effective and efficient waste management solutions, a gap that we were able to identify when we purchased Waste Harmonics in 2019. With our support, Waste Harmonics has played a key role in accelerating this shift towards more cost-efficient waste management solutions through its extensive vendor network. We will continue focusing on acquiring technology-driven businesses that are asset light, generate strong cash flows, and have the ability to scale across markets,” Martin Tan, Arcapita’s chief investment officer, said.

Martin Tan, Arcapita’s chief investment officer.
Martin Tan, Arcapita’s chief investment officer.

Arcapita also supported Waste Harmonics in completing four strategic acquisitions including Talismark Group, Contelligent, Meridian Alliance Partners, and New Market Waste Solutions.

Under Arcapita’s leadership, Waste Harmonics developed a network of over 5,000 vendors across more than 25,000 locations in North America, and is today recognized as a partner-of-choice for blue chip companies with regional, national, and global footprints. The successful sale is a testament to Arcapita’s focused business strategy, and its efforts towards identifying and growing attractive businesses.

Waste Harmonics will be combined with Keter Environmental Services, a recycling and waste management company acquired by TPG Growth in 2021. This combination will benefit from evolving customer preferences, including the centralization of procurement, focus on service quality, and increased waste stream complexity.

Michael Hess, chief executive officer, Waste Harmonics, said Arcapita has been a strong strategic shareholder supporting the development of the business.

“Our growth accelerated well beyond expectations, and we have developed a clear vision to continue our growth trajectory. I am personally grateful for the trust placed in me by the shareholders and I look forward to continuing to enhance our value proposition so that our customers enjoy easy access to high quality and cost-efficient waste management solutions across the globe,” he said.


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