Advanced Disposal Service (ADS)

The Story

Advanced Disposal Services, Inc. is a regional solid waste company providing integrated, non-hazardous solid waste collection, transfer, and disposal services in the Southeastern U.S.

Transaction Dynamics

A partnership with management to provide growth equity to fund a series of acquisitions.

Investment Thesis

  • Strong management team led by seasoned entrepreneur in the solid waste industry
  • Platform business with a well-defined growth strategy including vertical integration and multiple acquisition targets
  • High barriers to entry due to limited number of permitted landfills
  • Favorable market conditions in Southeastern US including privatization of county owned landfills
  • “Reverse” distribution business with opportunity to become leader in its markets
  • Opportunity to leverage prior investment experience in the waste industry

Incline Value Enhancement

  • Completed 47 acquisitions to become a top 3 market leader in Atlanta, Jacksonville and East Alabama
  • Opened Eagle Point Landfill; built out Alabama market; stabilized Atlanta market
  • Achieved Revenue Compound Annual Growth Rate (CAGR) of 51.6% over three years thru both acquisitions and organic growth initiatives
  • Grew EBITDA from $1.1mm in 2002 to $42.6mm at exit
  • Sold to AIG Highstar in 2006

Headquarters

Jacksonville, FL

Industry

Value-Added Distribution

Investment Date

September 2002

Status

Realized

Fund

I

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