Case Studies


Macquarie Group’s Acquisition of Ironwood Capital’s investment in Tunnel Hill Partners

TRANSACTION OVERVIEW

  • On February 12th, 2019, Ironwood Capital announced its exit from its investment in Tunnel Hill Partners, which was sold to Macquarie Infrastructure Partners (“MIP”), operating within the Macquarie Infrastructure and Real Assets (“MIRA”) division of Macquarie Group

TUNNEL HILL PARTNERS OVERVIEW

  • Tunnel Hill Partners is the largest integrated waste-by-rail operator in the United States with nine waste-by-rail transfer, trans-load, and recycling facilities in the Northeast, two rail-served landfills in Ohio, the largest beneficial use site in Pennsylvania (also rail-served), and recycling and hauling operations in Connecticut and Massachusetts.
  • The company provides a variety of services including hauling, recycling, beneficial reuse, transfer and disposal to commercial and industrial customers throughout the Northeast and Ohio

MACQUARIE INFRASTRUCTURE AND REAL ASSETS OVERVIEW

  • MIRA is a business within the Macquarie Asset Management division of Macquarie Group and a global alternative asset manager focused on real estate, infrastructure, agriculture and energy assets
  • MIRA has significant expertise over the entire investment lifecycle, with capabilities in investment sourcing, investment management, investment realization and investor relations
  • MIRA has approximately US$129 billion of total assets under management as of March 31, 2019

GREENTECH’S ROLE

  • Greentech acted as financial advisor to Macquarie Group
  • Greentech provided expert environmental services sector knowledge to support the development of MIRA’s acquisition and growth thesis as well as assisted on all aspects of transaction analysis and execution
  • Greentech also assisted MIRA in analyzing implications of the combination of Tunnel Hill Partners with MIRA’s other, concurrent acquisition of Wheelabrator Technologies, Inc., on which Greentech Capital also advised Macquarie Group

WHAT THE TRANSACTION MEANS
FOR THE SECTOR

  • Signals continued favorable operating conditions within the North American solid waste industry, driven by robust pricing and stable waste volumes
  • Tunnel Hill Partner’s collection and transfer infrastructure presence in dense Northeast metro markets positions the company to take advantage of more abundant disposal capacity it owns in Ohio and Pennsylvania
  • Alongside the acquisition of Wheelabrator Technologies, also advised by Greentech Capital Advisors, this transaction demonstrates Macquarie’s strong focus on waste in the Northeast U.S., an area with consistent and diverse waste generation and declining legacy disposal capacity, which is creating long-term value opportunities for waste-by-rail and waste-to-energy companies in the region

Other Case Studies