Macquarie makes major investment in LRS - Construction & Demolition Recycling

2022-04-25 06:41:46 By : Ms. Smiles Lynn

LRS says the deal will fuel its growth in the Midwest.

LRS, an independent waste diversion, recycling and portable services provider based in Morton Grove, Illinois, announced Sept. 9 that it has completed a significant equity investment to accommodate and scale its growth. The investment was made by Macquarie Infrastructure Partners (MIP) V, an Americas-focused, $6.9 billion unlisted infrastructure fund managed by Sydney-based Macquarie Asset Management (MAM). Financial terms were not disclosed.

According to LRS, the resulting ownership structure will accelerate the company’s growth trajectory and solidify its leadership position as the largest privately held waste, recycling and portable services provider in the Midwest and one of the largest in North America. Additionally, the company says the investment will have no impact on its existing services, operations or executive leadership team.

“At this juncture in our corporate evolution, we couldn’t be more delighted to receive this sizeable investment from MIP V," LRS CEO Alan Handley says. "With their deep knowledge of the space and the capital and support dedicated to our team, we will be an even more disruptive force in the waste and recycling industry. This partnership will propel our competitive leadership position throughout the Midwest, enable future-focused investments in technological innovation and allow us to continue our rapid growth both organically as well as through M&A.” 

Under the banner of the MIP series of funds, MAM-managed funds have invested over $2.9 billion in the waste industry in the Americas since 2007, including investments in Waste Industries, WCA, GFL Environmental, WIN Waste Innovations, Solví and now LRS.

“We are excited to partner with Alan and the rest of the LRS management team in supporting their next stage of growth. MAM has significant experience supporting waste businesses like LRS and invests in people, processes and systems to strengthen existing platforms, support future growth and improve performance,” Paul Mitchener, senior managing director of MAM, says.

The investment follows a year of aggressive growth for LRS, as evidenced by the acquisition of 12 waste, recycling and portable toilet companies in Illinois, Wisconsin, Michigan, Indiana, Minnesota and Iowa. Additionally, the company has experienced significant organic growth through being awarded numerous large municipal contracts, including the entire city of Chicago’s Blue Cart recycling contract.

Since its formation in 2013, LRS has grown from a single location with 200 employees and annual revenues of less than $50 million to a $375 million regional leader in waste diversion and recycling. Handley said LRS’ rapid rise has helped the company compete in municipalities and states throughout the greater Midwest, and the company will continue to seek best-in-class acquisition opportunities.

Goldman Sachs, New York City, served as lead investment banker on the deal; Much Shelist, Chicago, provided legal representation; and Capstone Partners, Boston, led financial advisory services for LRS.

J.P. Morgan, New York City, acted as exclusive financial advisor to MIP V, and White & Case, New York City, acted as legal counsel.

The research, which already shows promise as a means of diverting waste gypsum panels from landfills, has garnered support from the Gypsum Association.

The Gypsum Association (GA)—in partnership with Divert NS, in Nova Scotia, Canada— has announced its support for Dalhousie University Phase II research exploring the viability of using construction and demolition (C&D) waste gypsum in concrete.

The research, led by Pedram Sadeghian, associate professor and Canada research chair in sustainable infrastructure at Dalhousie’s Centre for Innovation in Infrastructure (CII) in the department of civil and resource engineering, already shows promise as a means of diverting waste gypsum panels from landfills and into a new product.

By incorporating recycled gypsum powder in concrete mixes, GA says it can reduce the amount of cement needed. The result is concrete with a lower carbon footprint.

“As durability is important for the majority of construction materials, our research group at Dalhousie University aims to study the durability of concrete containing recycled gypsum by monitoring compressive strength and potential expansion after exposure to selected environmental conditions. such as moisture and salt particle penetration, that are common to concrete structures exposed to the environment,” Sadeghian explains.

Gypsum is commonly used in cement manufacturing in small percentages; however, Dalhousie’s Phase I research demonstrated that gypsum could be a viable supplementary cementing material when combined with fly ash in concrete. Project outcomes from the initial study already have been shared in the Journal of Cleaner Production.

Phase I of the project (2018-2020) was supported by Divert NS, which in addition to funding research and development initiatives, delivers education and awareness programs, works collaboratively to develop and implement stewardship agreements, and promotes innovation through the development of value-added manufacturing.

“Divert NS is always looking for innovative waste diversion projects in Nova Scotia,” says Jeff MacCallum, CEO of Divert NS. “Dr. Sadeghian’s research represents a significant opportunity for the C&D sector to reduce wallboard waste, and we’re enthusiastic about potential GHG reductions if gypsum is proven a viable concrete additive.”

“We are very pleased to join Divert NS in supporting research that may improve numerous environmental outcomes,” says GA Executive Director Stephen H. Meima. “The gypsum industry is committed to landfill diversion of C&D gypsum panel waste and Professor Sadeghian’s work demonstrates that waste gypsum panels may have value beyond their service life in buildings and homes.”

Phase II research will take place over the next two years. During that time, the durability of various concrete mixes containing gypsum powder recycled from waste drywall will be the primary focus. A total of 81 specimens will be prepared and tested under three environmental exposures and three exposure durations. Results will be used to understand the performance and environmental benefits of concrete containing recycled gypsum over the life of structures.

The cement and aggregates producer has admitted to paying armed militant groups to protect the plant’s workers in Syria.

On Sept. 7, France’s Court of Cassation, the highest court in the country, overturned a decision by a lower court to dismiss charges brought against Lafarge for its alleged complicity in crimes against humanity in Syria’s civil war.

Lafarge, which is now part of Switzerland-based Holcim, is a leading producer of cement, construction aggregates and concrete.

According to Reuters, the company is under investigation for its tactics used to keep one of its factories running in Syria after civil war broke out in 2011. Chiefly, the company has admitted that its Syrian subsidiary paid armed militant groups, including the Islamic State terrorist group, to protect the plant’s workers. These payments, which were close to $15 million according to several human rights groups, went towards paying militants for raw material and oil, as well as for allowing the safe passage of workers through checkpoints.

While one of France’s lower courts threw out a charge of complicity against the company in 2019, stating that Lafarge had not knowingly associated itself with crimes against humanity, the Court of Cassation is now stating that an entity could be complicit by willfully ignoring the ramifications of its actions.

"In this case, the payment of several million dollars ... to an organization which is actively criminal is enough to characterize that complicity, whether or not the party in question was only doing so to pursue a commercial activity," the court stated in its ruling.

As part of its ruling, France’s Supreme Court said that magistrates should continue investigating Lafarge’s request to have the crimes against humanity charge levied against the company thrown out.

If the charge of complicity is reinstated against Lafarge, it would mark the first time in the country’s history that a French company has been tried for such a crime.

No trial date has been set, and the investigation into Lafarge’s payments is still ongoing.

Lafarge has stated that it "continues to cooperate fully with the French judicial authorities,” but offered no further comments on the matter.

Awards in three categories were given to companies that have made substantial contributions to U.S. recycling.

The National Waste & Recycling Association (NWRA) announced its 2021 Recycling Awards recipients on Sept. 2. The awards recognize innovators and leaders in the waste and recycling industry. Awards in three categories were given to companies that have made substantial contributions to U.S. recycling through partnerships, public education and innovations in recycling facilities. Winners were selected by a panel of judges who are professionals in the waste and recycling industry and from other technology and education organizations.

“These awards honor the very best in the industry for excellence in creating innovative approaches to advance our work and constructing state-of-the-art recycling solutions that help protect the environment,” NWRA President and CEO Darrell Smith says. “Our industry continues to make great strides in safety and engineering, which yields better results for the environment and the communities we serve.”

The 2021 Recycling Facility of the Year Award was shared by the Waste Management Hodgkins Materials Recovery Facility (MRF) in Hodgkins, Illinois, and the Mazza Recycling Services Materials Recovery Facility in Tinton Falls, New Jersey. Waste Management’s Hodgkins MRF is a highly automated facility that processes 66 tons per hour, known as Waste Management’s “MRF of the Future,” this is WM’s largest recycling facility. Control rooms at the MRF monitor processing equipment and the performance of optical sorters to provide a better understanding of what is happening in the plant from a centralized area. Waste Management believes its MRF of the Future will set the stage for future investments in residential recycling.

Mazza’s single-stream MRF was built in 2020 and designed to process 26 tons per hour. Today, the MRF handles 35 tons per hour and processes single-stream recyclables from 880,000 residents. The facility features the latest technological advancements and sorting equipment to produce cleaner commodities. The system is the only one of its kind on the East Coast.

The 2021 Organics Recycler of the Year Award also went to Waste Management. Waste Management’s current organics recycling program manages more than 3.5 million tons of material annually across 44 organics recycling facilities in the U.S., including 38 mulch and composting operations, four CORe food waste processing plants, and two new advanced facilities that employ state-of-the-art technologies to extract organics from the waste stream.

Waste Management’s organics recycling program focuses on advancing the industry to meet the sustainability demands of the communities and commercial and industrial customers the company serves. Waste Management’s CORe is a patented, state-of-the-art process that offers a local, urban solution for food materials

The 2021 Innovator of the Year Award went to AMP Robotics, Louisville, Colorado. AMP Robotics’ artificial intelligence (AI) and robotics technology are helping the waste industry combat challenges by modernizing recycling, improving material quality, ensuring worker safety, increasing productivity, lowering costs, diverting waste from landfills, reducing greenhouse gas emissions, and increasing overall rates of resource recovery.

The company recently debuted AMP Clarity, an AI-powered material characterization software solution that enables the recognition and classification of recyclables that flow through different recovery stages of the recycling process. This latest industry innovation serves as a breakthrough in the effort toward providing measurable transparency on the recyclables captured and missed during different recycling processes and confirming the composition of recovered material bales destined for resale to end markets in the supply chain. AMP Clarity can also help producer initiatives increase recycling rates and create new value streams for recyclables, ultimately aiding their pursuit of recycled content goals.

“I congratulate all our winners on their outstanding achievements and contributions. It is important we recognize the good work our industry is doing to make our communities better,” Smith says.

OSHA’s “Hand and Power Tools” booklet offers information on best practices for safely using power tools.

According to the Occupational Safety and Health Administration (OSHA), hand and power tools can be hazardous and have the potential for causing severe injuries when used or maintained improperly. Special attention toward hand and power tool safety is necessary in order to reduce or eliminate these hazards.

OSHA’s “Hand and Power Tools” booklet offers information on best practices for safely using these tools.

Here are some of the highlights from the booklet:

• When using power tools, OSHA says that appropriate personal protective equipment (PPE) such as safety goggles and gloves must be worn to protect against hazards that may be encountered during use.

• Workplace floors shall be kept as clean and dry as possible to prevent accidental slips with or around dangerous hand tools.

• Power tools must be fitted with guards and safety switches, as they are extremely hazardous when used improperly. The types of power tools are determined by their power source: electric, pneumatic, liquid fuel, hydraulic, and powder-actuated.

To prevent hazards associated with the use of power tools, workers should observe the following general precautions:

• Never carry a tool by the cord or hose.

• Never yank the cord or the hose to disconnect it from the receptacle.

• Keep cords and hoses away from heat, oil and sharp edges.

• Disconnect tools when not using them, before servicing and cleaning them, and when changing accessories such as blades, bits and cutters.

• Keep all people not involved with the work at a safe distance from the work area.

• Secure work with clamps or a vise, freeing both hands to operate the tool.

• Avoid accidental starting. Do not hold fingers on the switch button while carrying a plugged-in tool.

• Maintain tools with care; keep them sharp and clean for best performance.

• Follow instructions in the user’s manual for lubricating and changing accessories.

• Be sure to keep good footing and maintain good balance when operating power tools.

• Wear proper apparel for the task. Loose clothing, ties or jewelry can become caught in moving parts.

• Remove all damaged portable electric tools from use and tag them: “Do Not Use.”