CleanScapes of Seattle merging with Recology
Date: Tuesday, October 4, 2011, 2:59pm PDT
Chris Martin, CEO of CleanScapes
- Becky Monk
- Assistant Managing Editor - Puget Sound Business Journal
Seattle solid-waste management firm CleanScapes intends to merge with San Francisco-based Recology.
CleanScapes CEO Chris Martin told his staff of 280 employees Tuesday that his firm plans to merge with the employee-owned Recology if the deal is approved by the Federal Trade Commission.
The transaction, which is worth at least $66 million, would make CleanScapes a wholly owned subsidiary of Recology, but it would remain incorporated in Washington as CleanScapes, with the local management team fully intact.
The merger sets up CleanScapes to leverage the larger firm’s resources while continuing to expand its footprint and services even further, Martin said.
CleanScapes, which was Washington’s Fastest-Growing Private Company in 2010 according to Puget Sound Business Journal research, recorded revenue of nearly $47.3 million in 2010. Its big green trucks are currently hauling waste and recycling for Seattle, Shoreline, Des Moines, Portland and San Francisco. CleanScapes has just landed a contract as the city of Issaquah’s solid-waste disposal provider beginning in July of 2012 pending city council approval, and it plans to bid on several other municipal solid-waste contracts.
Recology is an employee-owned company headed by President and CEO Mike Sangiacomo. It is the parent company of Sunset Scavenger and Golden Gate Disposal. PSBJ sister publication San Francisco Business Times reported that the company reported revenue of $500 million in 2007, its last publicly reported figure.
Besides collecting garbage, Recology’s team of more than 2,700 employees also has large composting and recycling programs in Northern California, Oregon and Nevada.
“While we been growing in the collection department,” Martin said. “We don’t have the resources of Recology. We don’t have the compost or transfer facilities. This will allow us to leverage their expertise and stronger balance sheet.”
For its part, Recology gains a strong foothold in Western Washington. Recology managers were not immediately available for comment.
Martin declined to disclose the size of the transaction. But because the merger is subject to regulatory approval, the Hart-Scott-Rodino Act triggers a need for antitrust approval from the Federal Trade Commission when a transaction size exceeds the threshold of $66 million.
Martin said the companies plan to apply for approval later this week and expect the deal to close at the end of the year.
BECKY MONK is an assistant managing editor of the Puget Sound Business Journal. Phone: 206-876-5436 | Email: bmonk@bizjournals.com | Twitter: BeckyMonk Click here to sign up for the PSBJ Daily Update.
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