By Chibuike Oguh
NEW YORK (Reuters) - The asset management arm of Australian bank Macquarie Group (OTC:MQBKY) Limited has bought a majority stake in waste management firm Coastal Waste & Recycling, the bank said on Tuesday.
The terms of the deal were not disclosed. The transaction values Coastal Waste & Recycling at about $900 million, according to people familiar with the matter. The sources requested anonymity as the matter is private.
Coastal Waste & Recycling serves more than 450,000 customers mostly in Florida and Georgia, making it one of the largest waste management firms in southeastern U.S.
The Boca Raton, Florida-based firm was formed in 2017 out of a partnership between its Chief Executive Brendon Pantano, and private equity firms Summer Street Capital and Concentric Equity Partners.
Pantano and his management team will remain in their positions, while also retaining ownership stakes in the business, Macquarie said.
Macquarie Asset Management has about $582 billion in assets under management spread across Australia, the Americas, Europe, and Asia. It has invested more than $5 billion in waste management businesses in the Americas since 2007.
Macquarie was advised by Nomura Greentech and Sidley Austin LLP, while Coastal Waste & Recycling was advised by Houlihan Lokey (NYSE:HLI), Brown Gibbons Lang & Company, and law firm Winston & Strawn LLP.