Lakeshore Recycling Systems has acquired K. Hoving Companies for an undisclosed amount, which LRS says makes it Illinois’ largest private waste company and expands its system-wide services to include street sweeping and portable restrooms.
Hoving Companies is a full-service waste management, recycling and dumpster rental company based in West Chicago. It also operates the only recycling facility in Chicago that is nationally certified by the Recycling Certification Institute.
This purchase is expected to increase LRS’ annual revenues to nearly $170 million and its workforce to more than 720 full-time employees. LRS now operates seven material recovery facilities throughout the Midwest.
The combined companies will now control nearly 20 percent of Chicagoland roll-off market and will be the second largest portable toilet business in Illinois, according to LRS. The acquisition also increases the amount of inbound waste under its control to nearly 2.2 million tons per year.
The acquisition is also a strategic buy for LRS: both companies have “zero landfill” policies. In its continued efforts to increase diversion rates, LRS last year opened a new $8.5 million material recovery facility, assisted by a Closed Loop Fund loan, that sorts 20 tons or material per hour. The company’s older facility sorted 20 tons per day.
After just six months of opening its new single-stream recycling facility, LRS said it is generating a profit — about $100 per ton in revenues from commodity sales — and expects to divert more than 1 million tons of material from landfill by 2025.
Also this week, Waste Connections acquired Groot Industries, an Illinois-based solid waste services company, for an undisclosed amount.
Waste Connections provides waste and recycling services to industrial, commercial and residential customers in 40 US states and Washington, DC, along with five Canadian provinces.
Groot says it is the largest privately owned solid waste services company in Illinois with annual revenue of about $200 million and about 300,000 customers. It owns six collection operations, six transfer stations and two recycling facilities.
Groot will use its name within its local markets and Groot executives Ryan Brandsma and John Groot will continue to lead the company.
As Waste Dive reports, since buying Progressive Waste Solutions in June 2016, Waste Connections has become one of the largest waste management companies in North America.
A year earlier, in late 2015, Waste Connections acquired Rock River Environmental Services, a waste and recycling company with total annual revenue of about $75 million. The River Rock acquired operations service 19 counties in central and northern Illinois and included five collection operations, two landfills, one compost facility, one transfer station and one recycling facility.
According to its most recent earnings statement, Waste Connections’ 2016 third quarter, which included $513.1 million from the Progressive Waste acquisition, was $1.085 billion, as compared to revenue of $547.9 million in the year ago period.
In a statement announcing the Groot acquisition, Groot and Brandsma said their company had also looked to acquire Rock River.
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