Capstone FAS Team Supports Lakeshore Recycling Systems Through Recapitalization Process

Lakeshore Recycling Systems (LRS) has received a significant equity investment to accommodate and scale its growth from MIP V, an Americas-focused, $6.9 billion unlisted infrastructure fund managed by Macquarie Asset Management (MAM). Capstone Partners’ Financial Advisory Services (FAS) group provided transaction advisory services to LRS throughout the process.

As the Midwest’s leading independent waste diversion, recycling, and portable services provider, LRS has experienced nearly a decade of significant and consistent growth both organically, as well as through the acquisition of complementary businesses. Capstone’s FAS team has provided transaction advisory services to LRS on approximately 40 previous acquisitions in the past eight years.

During this latest engagement, Capstone provided transaction advisory services including financial due diligence, accounting services, synergy analysis, net working capital trending, negotiation consulting, and transaction closing support. Over the course of multiple assignments, Capstone Partners has worked with LRS executives to help ensure the full value of the Company was realized by providing sell side due diligence support including quantifying and properly supporting normalized EBITDA for the buyer’s review. Capstone worked with management to identify and quantify synergies on recent LRS acquisitions and market expansions. In addition, Capstone provided project management services to support the seller during the due diligence and transaction closing processes.

LRS is North America’s fifth largest privately held waste and recycling company offering fully integrated waste diversion and recycling services for over 1.5 million residential and commercial customers in Illinois, Wisconsin, Minnesota, Indiana, Michigan, and eastern Iowa.

Alan Handley, CEO, Lakeshore Recycling Systems, said

"Our business has grown from a single location with 200 employees and annual revenues of less than $50 million in 2013 to a $375 million super-regional leader in waste diversion and recycling. During that time, the team at Capstone has supported our M&A with ongoing financial advisory, due diligence, quality of earnings reviews, and transaction management services across multiple transactions. They have literally been beside us all along the way, working to help us achieve the aggressive goals we set for our company. Engaging them to continue to support us through this recapitalization process was an easy decision for us to make."

FAS Managing Partner Brian Davies, said

“We are very proud of our relationship with LRS and honored to have been asked to help them in this latest endeavor. While many people have gotten to know FAS from the crisis management aspect of our services, providing our clients with transaction advisory services and planning and executing growth strategies is an equal share of our team’s mission. Getting to see a long-range vision come to such a successful culmination is one of the most rewarding aspects of the work we do.”


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