PE-backed Stella Environmental buys waste management company Rackleff

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Stella Environmental Holdings Inc., a portfolio company of Hidden Harbor Capital Partners (HHCP), has acquired Rackleff Enterprises, a waste transfer station management company.

Rackleff operates seven transfer stations where solid waste is held in order to be transferred, treated or properly disposed of at another solid waste facility. The Statesboro, Georgia-based target expects to benefit from operational efficiencies by joining the buyer. On the contrary, the deal for Rackleff is intended to help Stella Environmental expand in the southeast region of the U.S.

Founded in 1992, Stella Environmental provides outsourced transfer management services to waste companies, municipalities and other government entities. The Houston-based buyer helps to manage the loading and transportation of waste from in-town processing facilities to remote landfills. HHCP acquired Stella Environmental, previously a division of Action Resources, in August to operate as a standalone company.

“This acquisition strengthens our position in the transfer station management industry by expanding our reach and deepening our capabilities,” states Stella Environmental CEO Wilfred Roth. “Rackleff’s operational expertise and steadfast commitment to its customers align strongly with Stella’s core values, and its leadership position in the Southeast will help drive our continued growth.”

HHCP is a lower middle-market private equity firm based in Ft. Lauderdale, Florida. The firm invests in North American companies generating between $50 million and $500 million in revenue across the industrials, transportation and logistics, consume products, business services and retail sectors.

HHCP isn’t the first private equity firm to show interest in waste management company. In July, Bain Capital backed the acquisition of commercial recycling provider Living Earth using the firm’s Bain Capital Double Impact investing strategy.

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