TUNNEL HILL PARTNERS COMPLETES COMBINATION WITH
THE CONNECTICUT AND SOMERS, NY OPERATIONS OF CITY CARTING HOLDING COMPANY TO
CREATE ONE OF THE LARGEST INTEGRATED WASTE COMPANIES IN THE NORTHEAST
Expands
footprint in disposal-constrained Northeast and increases scale of operations
Realizes
a larger, more diversified customer base with predictable recurring cash flows
Increases
overall percentage of municipal waste managed by Company
Jericho, NY and Stamford, CT; June 7, 2016 – Tunnel Hill Partners is pleased to announce that the combination
with the Connecticut and Somers, New York operations of City Carting Holding
Company closed on June 3rd. The
transaction had been unanimously approved by both companies’ Boards of
Directors.
“We are extremely excited to
have closed this transaction,” said William W. Gay, Chief Executive Officer of
Tunnel Hill Partners. “The combination of our two companies makes us one of the
largest integrated waste management companies in the Northeast and aligns
perfectly with our goal of maximizing shareholder value through focus on
long-term growth and stability. It provides us the opportunity to expand our
service offerings to a wide customer base in attractive, dense and affluent
markets. Scale benefits aside, this transaction will provide us with immediate
synergies and other cost saving opportunities. We look forward to revitalizing
a previously undercapitalized company through operational and capital guidance
and support.”
“These are assets run by great
people who care deeply about the company, its customers and their communities,”
continued Mr. Gay. “We are confident this combination is in the best interest
of all of our stakeholders, including our employees who will benefit from enhanced
growth and development opportunities as part of a larger company. Operational
excellence, accountability, high customer satisfaction and deep community engagement
will continue to be our top priorities.”
“Today is an exciting day for
us,” said Anthony Farina, Chief Operating Officer at City Carting Holding
Company, who will retain his role at City Carting. “Tunnel Hill’s interest in merging
with us underscores the strengths of our employees and the dedication of our
employees to customer satisfaction and community engagement. We are excited to
have the support of Tunnel Hill to revitalize our operations by modernizing the
fleet, improving productivity and efficiency and expanding our service
offerings to become a full vertically-integrated waste management company.”
The assets joining Tunnel
Hill Partners consist of collection and hauling operations of municipal solid
waste, construction and demolition debris, and recyclables for commercial,
industrial, residential and municipal customers; four transfer stations and one
material recovery facility; and management contracts for five municipal
transfer stations. In 2015, these operations generated in excess of $110
million in revenue and disposed approximately 700,000 tons of waste.
ABOUT TUNNEL HILL PARTNERS
Tunnel Hill Partners, based
in Jericho, New York, is the largest waste-by-rail service provider in the
United States. Led by a management team with over 160 years of combined
experience in the waste industry, the company’s assets include two rail-served
Subtitle D landfills in Ohio, one rail-served beneficial reuse facility in
Pennsylvania, five rail-served transfer stations in New York, New Jersey and
Massachusetts, and one state-of-the-art construction and demolition processing
facility in Massachusetts. The company is supported by American Infrastructure
Funds, MLP, an innovative private investment firm specializing in real
property, natural resource and infrastructure businesses.
