Summer Street Capital Partners and Ironwood Capital made a growth capital investment in Action Environmental Services, an equity infusion that will help the company acquire certain Republic Services assets based in New  York City.Terms of the deal were not disclosed.

The investment represents a return to the waste management space for the sponsors. Previously, they had backed New York-based waste management company IWS, which was sold in 2006 to AIG Highstar.

Calls to the firms were not acknowledged by press time.

For Action, the deal represents its most recent major purchase. It previously took on PE funding when it acquired certain Waste Management assets in 2007. This most recent deal will expand the company's fleet by about 20 percent.

Summer Street was founded in 1999 by Mike McQueeney, who was founder and president of Buffalo Ventures prior to that, and Brian D’Amico, who worked as vice president at Buffalo Ventures. D’Amico heads the PE firm’s environmental services investment team. Backed with about $300 million, Summer Street is currently investing through its second fund.

This year, a number of private equity deals in the waste management space have unfolded as consolidation looms over the industry. Rock Hill Capital made an add-on deal this year to support its SouthWaste Services, a Florida-based company it acquired and recapitalized in 2009.

For the Action Environmental/Republic Services deal, Comerica Bank provided debt financing, while WY Campbell & Co. served as financial advisor.

 

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