Waste & Recycling - Executive Summary March 2021

Published on: 03/18/2021

Capstone has released its March 2021 Waste & Recycling Update, available for free download below.

Capstone has reported that EBITDA multiples of large public waste and recycling companies have returned to pre-pandemic levels driven by sustained demand for waste management and recycling services during the pandemic and recent increases in commercial and residential waste volumes. However, waste and recycling companies continue to face operational challenges due to staffing limitations and social distancing requirements. While merger and acquisition (M&A) activity decreased by 23.1% in 2020 year-over-year (YOY), Capstone expects transaction volume to increase in 2021 as companies continue to consolidate.

Report highlights include:

  • Resurgences in economic activity have increased non-residential waste volume, heightening demand for commercial waste services.
  • Private equity add-on deals made up 37.8% of 2020 deal volume as private equity firms have adopted a buy-and-build strategy to bolster the geographic reach of platform investments.
  • Strategic public buyers composed 27.3% of total 2020 transactions as smaller industry participants were consolidated by large public companies.
  • Capstone expects companies to pivot investment towards their recycling segment in order to capture elevated demand as consumer goods companies increasingly utilize recyclable materials.

To learn more about the contents of the report, please contact managing director Doug Usifer.

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