NOVEMBER 2023
MICHAEL VINCIGUERRA
Managing Director 
Environmental & Industrial Services
ENVIRONMENTAL & INDUSTRIAL SERVICES
EXECUTIVE INSIGHTS: 
SUSTAINABLE WASTE SOLUTIONS

2
SUSTAINABLE WASTE SOLUTIONS
NOVEMBER 2023
If you don’t change with the times, the times are going to change 
you. Aspects of sustainability have been around for decades, but the 
combination of societal and political in昀氀uences in recent years has caused 
corporations to make signi昀椀cant changes. Accordingly, the conversations 
waste companies are having with customers is shifting as they offer a 
critical link in the transition to a more circular economy.
In the waste sector, change is the one constant. There has been an evolution 
across every aspect of the sector over time, from composition of volume 
to recycling economics, available processing and disposal technologies, 
and regulations. Even what is viewed as sustainability itself has changed; 
for example, moving from zero waste-to-land昀椀ll only a few years ago to a 
more comprehensive approach that includes carbon emissions. But while 
change is certain, businesses must also recognize that there is never one 
perfect answer—and they must, therefore, be nimble enough to reassess 
and recalibrate when needed. 
Take plastic bags. Sixty years ago, they were invented to help reduce 
the need to cut down trees for paper bags. Plastic bag production also 
requires less energy and water than paper and reusable cotton bags. 
According to the UK Environmental Agency, we need to use a paper bag 
three times for it to be as environmentally friendly as one recycled plastic 
bag. Bags made of cotton—a crop that requires signi昀椀cant amounts of 
water to grow—need to be used at least 131 times to be as environmentally 
friendly as a plastic bag.
So, why are plastic bags being banned in certain municipalities? Because 
they are challenging to recycle and need to be specially sorted, which 
means that the bulk of the trillion-plus plastic bags produced each 
year are used just once before ending up in a land昀椀ll, or worse, as litter 
in the global ecosystem. But what happens when we make signi昀椀cant 
investments around plastic recycling (several of which are underway)? 
Will that change the narrative once again around plastic bags? 
Advancements in processing technologies along with societal, political 
and corporate sentiment can have meaningful impacts on volume 
composition and margins within the sector. While companies value 
sustainability to varying degrees, ultimately, earnings get reported to 
shareholders, so waste companies that offer solutions that are both 
economically compelling and sustainability-driven will have a signi昀椀cant 
advantage and be well-positioned to achieve outsized growth. 
INTRODUCTION

3
SUSTAINABLE WASTE SOLUTIONS
NOVEMBER 2023
Further, many businesses struggle with setting and tracking their 
sustainability goals. They contract with multiple service providers for 
different waste streams across multiple facilities, which creates disparity in 
data and uneven reporting. This can make it dif昀椀cult for business leaders 
to gain a holistic view of a waste program and track and achieve progress 
toward meeting sustainability goals. Service providers that manage 
comprehensive waste programs are gaining favor, particularly among 
customers seeking out timely data used to track land昀椀ll diversion rates, 
recovered recyclables, and emissions. 
When companies move closer to achieving their sustainability goals, they 
are more likely to place a premium on services that can help them achieve 
incremental progress. That creates an incentive for waste providers to take 
a more consultative approach and offer more advanced solutions that may 
require operational shifts or on-site investments.
At Solomon Partners, we believe that sustainability-oriented waste 
companies will command elevated attention from investors within the 
already attractive environmental services sector. Such providers offer both 
the opportunity to capitalize on changing customer behavior to yield out-
sized organic growth as well as compelling M&A opportunities to build 
additional scale. Further, the emergence of new technologies and tech-
enabled business models will also create opportunities for growth-oriented 
investors to deploy additional capital into the sector. 
For these reasons, I recently convened a series of discussions with top 
executives from six leading waste and environmental service providers. Our 
conversations touched on a wide variety of topics, from shifting customer 
focus to customers balancing costs vs. achieving their sustainability goals, 
to emerging opportunities and technologies. We share highlights of these 
discussions to allow you to hear these leaders’ insights in their own words. 
We hope you enjoy these insights and welcome the opportunity to discuss 
these issues and opportunities in the waste sector with you. 
Regards,
MICHAEL VINCIGUERRA
Managing Director
michael.vinciguerra@solomonpartners.com
+1.312.324.7419

4
SUSTAINABLE WASTE SOLUTIONS
NOVEMBER 2023
 EXECUTIVE INSIGHTS
06
MARKET UPDATE
13
- DEFINING SUSTAINABLE WASTE SOLUTIONS
- HIGH-TOUCH SERVICES ARE WINNING
- SHIFTING CUSTOMER FOCUS
- CAPITALISM VS. ALTRUISM
- DATA, DATA, & MORE DATA
- EMERGING TRENDS & TECHNOLOGIES
- NOTABLE PRIVATE EQUITY TRANSACTIONS
- CONCLUSION
 PARTICIPATING EXECUTIVES
05
CONTENTS
ABOUT SOLOMON PARTNERS
18

5
SUSTAINABLE WASTE SOLUTIONS
NOVEMBER 2023
AZEEZ MOHAMMED
Chief Executive Of昀椀cer
ABOUT COVANTA
Covanta is a leader in sustainable materials management, 
providing environmental services to businesses and 
communities. Through its network of facilities and state-
of-the-art services, Covanta is a single-source partner in 
solving today’s most complex environmental challenges.
PETER LUX
President
ABOUT ENVITA
Envita Solutions, formerly known as Heritage Interactive 
Services, is a leading total waste management partner. 
A division of The Heritage Group, the company is 
dedicated to fostering a healthier planet by transforming 
complex waste challenges into sustainable solutions. 
Headquartered in Indianapolis, Indiana, Envita Solutions 
operates in the U.S., Mexico, and Canada, and has over 300 
employees and a network of over 3,000 supplier partners.
MICHAEL HESS
Executive Chairman
ABOUT KETER & WASTE HARMONICS
Keter Environmental Services ("Keter"), a leading recycling 
and waste management company, and Waste Harmonics, 
a national technology-enabled managed waste service 
provider, merged in October 2023. Both businesses 
leverage a national network of haulers and proprietary 
tech to coordinate, manage, and optimize customers’ 
waste and recycling programs. Together, Keter and Waste 
Harmonics service nearly 70,000 business locations for 
750 customers across a wide range of industries.
SETH GOODMAN
Chief Executive Of昀椀cer
ABOUT NORTHSTAR
Northstar Recycling is a North American provider of 
sustainability-oriented recycling and waste solutions 
intended to serve food product, consumer goods, 
and furniture industries. The company is dedicated to 
utilizing consolidated reporting, cost-saving initiatives, 
and industry expertise to maximize value for their clients. 
Northstar provides services for business facilities across 
the U.S. and Canada.
BOB CAPPADONA
Chief Executive Of昀椀cer 
North America
Environmental Solutions & Services
ABOUT VEOLIA NORTH AMERICA
Veolia North America is an international provider of water, 
waste, and energy solutions. The company is devoted to 
utilizing innovative technology solutions and unmatched 
industry knowledge to provide value-added services to 
improve the global environment. Veolia, with the help of 
its 179,000+ employees, supplies over 100 million people 
with safe drinking water.
KEITH CORDESMAN
Executive VP - Waste
ABOUT VLS
VLS Environmental Solutions is a provider of mission-
critical, specialty cleaning, customized waste, and repair 
services to a variety of industries across North America. 
The company is committed to creating an eco-friendly 
environment within the consumer product, healthcare, 
and food industries (among others). VLS has over 1,000 
employees and serves over 10 states.
PARTICIPATING EXECUTIVES

6
SUSTAINABLE WASTE SOLUTIONS
NOVEMBER 2023
What does it mean to be a sustainable waste provider 
today? There isn’t a simple de昀椀nition because our 
understanding of what’s sustainable is constantly 
evolving. Further, though businesses often tout their 
commitment to the environment, we know there 
is a gap between words and actions. According 
to a study, although 90% of executives believe 
sustainability is important, only 60% of companies 
incorporate sustainability in their strategy and just 
25% have integrated it into their business model. 
“We describe sustainability as a journey,” said Peter 
Lux, President of Envita Solutions. “To us, it’s this 
never-ending commitment to continuous improve-
ment and, ultimately, it bene昀椀ts communities, the 
planet and drives pro昀椀tability for our customers.”
However, with every service provider in the broader 
environmental services arena touting “sustainability,” 
it can be challenging to determine which solutions 
are truly having an impact. Companies with 
advanced solutions are helping to lead the charge 
on market education. 
“People have made comments about how waste 
companies tend to greenwash, but we have the sci-
ence behind us,” said Azeez Mohammed, CEO of Co-
vanta. “We bene昀椀cially reuse 300 million gallons of 
water every year. We extract over half a million tons 
of metal from waste and put it back into circulation, 
so it’s a carbon-negative metal. We are also the 
market leaders in this concept called waste-to-fuel, 
which serves as a replacement to coal in cement 
production.”
With the expansion of sustainable waste solutions, 
businesses are increasingly seeking holistic pro-
grams that consider the entire life cycle of the waste 
stream, from treatment to transportation. 
“To us, sustainability is about waste diversion as our #1 
priority,” said Seth Goodman, CEO of Northstar. “How 
can we help our partners divert anything that is recy-
clable out of their waste stream to an end user that is 
either going to reuse that material or recycle it?”
But getting buy-in from businesses takes time. And 
waste service providers that prioritize relationship 
building will be well-positioned to advise and partner 
with companies in a meaningful way in the long term. 
“We partner heavily with our customers,” said Keith 
Cordesman, Executive Vice President, Waste, at VLS. 
“We have deep relationships with them. When we 
pitch, we are more focused on the relationship we 
are going to build and coming up with creative ways 
to handle their waste and keep it out of land昀椀lls.”
 
DEFINING SUSTAINABLE WASTE SOLUTIONS
INTEGRATION OF SUSTAINABILITY
90%
60%
25%
90% of executives believe 
sustainability is important
60% of companies incorporate 
sustainability into their strategy
25% of companies integrated it 
into their business model
BCG/MIT
EXECUTIVE INSIGHTS
“
 ”
To us, sustainability is 
about waste diversion 
as our No. 1 priority.
— Seth Goodman, CEO, Northstar

7
SUSTAINABLE WASTE SOLUTIONS
NOVEMBER 2023
To be competitive in today’s changing environment, 
providers must think creatively and take a consul-
tative approach to how they help customers reach 
their sustainability goals. 
“Our engagement with the customer starts with a 
true understanding of what they do every day and 
the materials or environment they operate in, and 
then we gear our customer-speci昀椀c solution from 
there,” Veolia North America’s CEO of Environmen-
tal Solutions & Services Bob Cappadona explained. 
“The agreements we have in place are structured 
such that we’re rewarded by how we improve their 
environmental footprint, which is very different than 
a price-per-pound relationship. It allows us to oper-
ate in a better, more environmentally friendly, long-
term way.”
Truly understanding a customer’s needs and the en-
vironment they operate in is imperative to creating a 
customized solution that can deliver far more value 
than a provider offering a one-size-昀椀ts-all approach. 
“We can substantially help customers by simply 
measuring their waste streams,” said Michael Hess, 
Exec Chairman of Keter/Waste Harmonics. “That 
allows us to create insightful solutions because now 
we’re seeing where waste is being generated, where 
it’s not, and we can start implementing short-term 
actions to kick-start their long-term sustainability 
goals.”
A growing number of service providers are focused 
on processing waste as an alternative fuel source for 
the cement kiln industry. 
“Cement kilns are one of the top polluting industries, 
and they are on this journey to decarbonize them-
selves, and we are a critical solution,” Mohammed 
of Covanta said. “These are the reasons why we con-
sider ourselves sustainable, and we have the science 
to back it up.”
Europe is a leader in the adoption of alternative fuel 
sources for cement kilns. According to Mohammed, 
European cement kiln operators can replace 
550,000 tons of carbon dioxide for every million 
tons of cement production. Those 昀椀gures dwarf U.S. 
adoption, which is at roughly 5%-10%. But U.S.-based 
waste providers are keenly focused on catching up 
to their overseas counterparts. 
“We’re focused on the portion of the waste stream 
that would otherwise be end-of-life, and we’re 
昀椀nding a new purpose for that waste,” Cordesman 
of VLS said. “We service companies such as BMW, 
Mercedes, Toyota. We’re taking their end-of-life-
waste and we put that into our shredding process, 
and we blend that waste. The whole thing is more 
art than science and, at the end, we have a homoge-
neous blend of alternative fuel that our cement kiln 
partners can utilize to displace coal, or the gasi昀椀ers 
can use to displace natural gas.”
We partner heavily with our 
customers... we are more 
focused on the relationship 
we are going to build and 
coming up with creative 
ways to handle their waste 
and keep it out of landﬁlls.
— Keith Cordesman, EVP, Waste, at VLS
HIGH-TOUCH SERVICES ARE WINNING

8
SUSTAINABLE WASTE SOLUTIONS
NOVEMBER 2023
In the sustainable waste sector, there is often a push 
and pull between competing priorities. As of 2022, 
702 of the world’s largest 2,000 companies have set 
net-zero carbon emissions targets across a range of 
time horizons. At the same time, companies have 
also set zero waste-to-land昀椀ll goals. Certain efforts 
to drive zero waste-to-land昀椀ll can impact emissions, 
so businesses committing to both targets must take 
a more holistic view of their sustainable business 
practices. 
“For many years, most companies were very gung-
ho that they were going to be zero waste-to-land昀椀ll,” 
said Northstar’s Goodman. “It’s slow and still 
infrequent, but for the 昀椀rst time over the past six 
months or so, we’re starting to hear comments like 
‘zero waste-to-land昀椀ll may not have been the best 
long-term strategy for us as it relates to sustainability’ 
given impacts asssociated with certain disposal 
alternatives”
Peter Lux, President of Envita Solutions, says cus-
tomers must always look at how transportation 
affects the total carbon footprint.
“Sometimes sending waste to a nearby land昀椀ll with 
methane gas capture versus waste-to-energy or 
some other solution several miles away is the more 
environmentally sustainable decision,” he said. 
“Instead of a blind wholesale commitment to zero-
waste-to-land昀椀ll initiatives, there is a growing desire 
for customers to better understand the holistic car-
bon impact of byproduct treatment decisions.” 
When it comes to shifting customer focus, culture 
plays an important role. It can be dif昀椀cult for compa-
nies that have set certain goals to understand that 
they may have to adjust their targets to become 
more holistically sustainable. 
“We have customers that regardless of the trans-
portation, they are straight down the line zero 
waste-to-land昀椀ll,” said Cordesman of VLS. “For those 
organizations that have ingrained zero waste-to-
land昀椀ll in their culture, for them to evolve to consider 
something different, it’s a slow turn of the ship.”
Ultimately, businesses committed to sustainability 
will need to set high standards and seek solutions 
that help delivery and track progress. But like any 
major investment, it won’t happen overnight, and 
waste companies seeking long-term partnerships 
with customers centered around sustainability 
must offer economically viable solutions that help 
customers achieve consistent, incremental improve-
ment while working toward their larger goal.
“Getting to zero waste-to-land昀椀ll is a north star 
to shoot for, but we have to realize that it’s a jour-
ney,” Covanta’s Mohammed said. “To be practical, 
these things are going to take decades to get to 
meaningful levels. Our customers want to get to 
those zero waste-to-land昀椀ll and median-avoidance 
goals, so they’re looking to us to come up with a ho-
listic solution.”
48%
Almost half, or 48%, of 
surveyed CEOs say increasing 
sustainability is a top priority
— up 37% since 2021.
IBM Institute for Business
“
 ”
— Azeez Mohammed, CEO, Covanta
SHIFTING CUSTOMER FOCUS
Our customers want to 
get to those zero waste-
to-landﬁll and median-
avoidance goals, so they’re 
looking to us to come up 
with a holistic solution.

9
SUSTAINABLE WASTE SOLUTIONS
NOVEMBER 2023
cost while still meeting the company’s sustainability 
goals. Not only is the behavior changing, but who is 
in the room is changing.” 
Though corporate America is quick to tout its 
commitment to sustainable practices, some pro-
viders say there is a disconnect between senior 
management and the facilities and procurement 
departments, the latter of which must wrestle more 
directly with budgetary constraints. 
“At the corporate level, they are still very interested in 
solving the problem because the direction we want 
to go in requires signi昀椀cant shifts,” said Covanta’s 
Mohammed. “But in the same companies, when 
you go down to the facility levels, they are bound 
by short-term KPIs and objectives, which may 
not allow them to invest in the premium. Mature 
companies are mandating this at the corporate 
level, but they’re also putting boots on the ground 
to help those facilities get it through a carrot-and-a-
stick approach.”
In time, all businesses must evaluate not only the 
cost of investing in more sustainable practices, but 
also the price of inaction, as customers are increas-
ingly prioritizing environmental factors as part of 
their purchasing decisions. 
“Altruism 
has 
been 
infused 
into 
capitalism,” 
Veolia 
North 
America’s 
Cappadona 
com-
mented. “It becomes part of the product that 
they sell. Price does matter, but the differ-
ence now is that companies are asking: What 
is the negative impact of not achieving environ-
mental performance in terms of the ability to sell my 
product and the market perception of my product?”
CAPITALISM VS. ALTRUISM
Though large businesses are widely embracing 
the “E” component of ESG, companies continue to 
evaluate their sustainability programs from a 昀椀scal 
perspective. 
In terms of cost vs. bene昀椀ts, some waste providers 
say that price continues to rule the day, although 
sustainability is steadily gaining ground, with a 
small but growing number of Fortune 1,000 
customers willing to pay a premium for a more 
sustainable option. 
“Procurement folks are still very much cost driven, 
but what you can deliver in terms of sustainability 
impact for the customer is the next-most important 
thing,” said Lux of Envita Solutions. “Organizations 
that are serious about achieving their sustainability 
goals understand the trade-offs, and they are willing 
to spend more when necessary to make the most 
sustainable choice.”
Other providers say we’ve reached the tipping point, 
with a growing number of businesses willing to pay 
a premium for the more sustainable option, though 
a great deal of the decision-making is tied to locality. 
As customers in certain regions demand the more 
sustainable solution, businesses begin to follow 
their lead—and the scales start to quickly shift in fa-
vor of sustainability.
“Overall, we’re seeing an elevated consciousness,” 
commented Cordesman of VLS. “In regions of the 
country where you have low land昀椀ll costs, the will-
ingness to pay for services is not as high, but at the 
same time, customers in those regions haven’t fully 
evolved into that space yet. Necessity is the largest 
catalyst for innovation.”
One reason certain companies are prioritizing sus-
tainability is because they’ve made investments at 
the highest levels of their organizations, by bringing 
in sustainability leaders and giving them broad de-
cision-making authority.
“When we start our discussions, we are speaking 
with facilities, procurement and sustainability,” said 
Keter/Waste Harmonics’ Hess. “We generally have 
those three groups in the room, and that is the right 
audience because there needs to be a balanced 
approach between what they can execute for the 
Altruism has been infused into 
capitalism. It becomes part of 
the product that they sell.
— Bob Cappadona, CEO, 
Environmental Solutions & Services, 
Veolia North America

10
SUSTAINABLE WASTE SOLUTIONS
NOVEMBER 2023
Companies initiate sustainability programs for many 
reasons—to reduce costs, as a business/economic 
incentive, and to show customers and investors that 
they’re doing right by the environment. Regardless 
of their motivations, it becomes impossible for busi-
nesses to properly assess their existing ecological 
footprint and reach their sustainability goals if they 
can’t establish a baseline and track progress. 
“We have 20 years of con昀椀dential granular data on 
all our customers’ byproducts,” said Lux of Envita 
Solutions. “It’s a treasure trove that provides in-
sights into the components of those streams, the 
cost of their treatment methodologies, as well as 
the carbon impact. As the market evolves, we can 
identify new and better opportunities for treatment 
to bene昀椀t our customers, from both a sustainability 
and cost mindset.”
While comprehensive reporting is still at a nascent 
stage, waste service providers are leading the charge, 
bringing disparate data points into one place and 
using that information to create programs to mea-
sure both cost and effectiveness. 
“We understand how important the data is for our 
customers,” said Goodman of Northstar. “Our ability 
to get the data centralized, aggregated and accurate 
in a very timely way is hard to do, and it’s critical that 
a company like ours can track progress. Big manu-
facturers can’t do it on their own.”
Instead of relying on lagging data, innovative waste 
providers are incorporating technology and sensors 
into bins and other equipment to provide real-time 
information. 
“We use monitors and sensors to get real-time data 
on the program’s performance,” said Hess of Keter/
Waste Harmonics. “We can see 昀椀ll, diversion and 
recycling rates. And with our proprietary software, 
we have access to 昀椀rsthand data, which we use to 
generate enterprise-wide sustainability reporting 
for each customer. Additionally, we have a 昀椀eld 
team stationed across the U.S., which puts a dedi-
cated resource within a three-hour drive of each of 
our customer locations. This team works on-site to 
create and execute waste and recycling improve-
ment programs because this is not our customers’ 
core competency; they have other things they want 
to focus on.”
When customers have easily digestible, reliable data, 
they can better set and meet targets.
“All our 昀椀eld teams operate with a laptop computer 
that provides access to the company’s chemical da-
tabase, as well as the customer’s chemical database, 
so they have all the information when they’re face-
to-face with the customer,” Cappadona of Veolia 
North America said. “We will spend $10 million-plus 
in the coming year, with continuous upgrades. It’s 
quite the investment in our front-end IT systems, 
but it’s a critical part of what we do, and it enables us 
to operate with a level of speed that I think is unique 
to the market.”
EMERGING TRENDS & TECHNOLOGIES
With 
the 
emergence 
of 
many 
innovative 
technologies and processes, the sustainable waste 
sector is growing exponentially. The next decade will 
be transformative as businesses scale up to meet 
stringent goals. 
“In a 昀椀ve- to 10-year horizon, it will be night-and-day 
different from what it is now,” commented Covanta’s 
Mohammed. “For 25 years, I used to be on the other 
side, and we had stated objectives, but to be honest, 
they were revised every year to make them more 
manageable. And people were OK with that. Now, 
there’s no tolerance. The objectives are getting more 
reasonable because people are being held account-
able. You can no longer punt it.”
Sometimes sending waste to a nearby landﬁll with 
methane gas capture versus waste-to-energy or 
some other solution several miles away is the more 
environmentally sustainable decision.
— Peter Lux, President, Envita Solutions
DATA, DATA, AND MORE DATA

11
SUSTAINABLE WASTE SOLUTIONS
NOVEMBER 2023
Twenty years ago, the EV revolution promised to 
signi昀椀cantly reduce greenhouse gases. But the rise 
of modern battery-powered vehicles has placed 
urgent emphasis on developing an effective process 
for battery recycling. When perfected, the technol-
ogy will not only reduce the amount of material 
waste; it will also cut down on pollutants associated 
with mining for lithium needed for batteries. 
“As we transition to more dependence on batteries, 
the energy sector is going to feel very different 10 
years from now,” Lux of Envita Solutions said. “We’ve 
watched battery technology and the battery supply 
chain evolve rapidly. It’s important that America 
takes a leading role in this sector, which is why 
The Heritage Group, Envita Solutions’ parent com-
pany, invested deeply in the space with the creation 
of Cirba Solutions, a leader in EV battery recycling.” 
From battery circularity to windmill blade recycling 
and modular facilities, waste providers are invest-
ing in technologies to improve existing methods 
and tackle new and increasingly challenging waste 
streams.
“I’m excited about some of the new technologies, 
particularly how they relate to the last piece, the 
land昀椀ll,” Northstar’s Goodman said. “As an example, 
we’re working with a startup that’s developing a 
modular waste-to-energy unit that goes at a site’s 
facility as an alternative to hauling end-of-life waste 
to an off-site location.” 
Beyond recycling and disposing of waste, providers 
are also developing processes for handling hazard-
ous materials such as PFAs, also known as “forever 
chemicals,” which are everywhere and pose serious 
risks to humans and animals. 
“What will be different than in the last 10 years is the 
impact of emerging pollutants—things like PFAs,” 
said Veolia North America’s Cappadona. “We have 
plenty of discussion about PFAs and their potential 
impact on the environment and on humans. And 
at what level do you regulate it, given that it is ev-
erywhere, in every part of life? How do we regulate 
that? Right now, it’s a question with no answer, but I 
think there will be an answer soon.”
NOTABLE PRIVATE EQUITY 
TRANSACTIONS
Increasing demand for sustainable solutions has 
made the waste sector one of the most attractive 
for private equity investment. In 2022, the waste 
sector was one of the rare industries to experience 
M&A growth, with activity among public strategics 
up over 34%, compared to 2021 . For private equity 
investors, interest in this category 昀椀rst took hold 
during COVID-19, which underscored the impor-
tance of non-discretionary services such as waste 
disposal.
“During COVID, we didn’t miss a beat,” said 
Mohammed of Covanta. “We didn’t take signi昀椀-
cant pricing actions either because we didn’t want 
Aug ‘23
Jun ‘23(1)
Apr ‘23
Jan '23
Dec ‘22
Nov ‘22
Oct ‘22
Sept ‘22
Aug ‘22
Jul ‘22
BUYER
TARGET
1) Keter Environmental and Waster Harmonics agreed to a merger.
Jul ‘22
Dec ‘21
Dec ‘21
Nov ‘21
Oct ‘21
Dec ‘20
Jan ‘20
Jul '19
Apr ‘19
BUYER
TARGET

12
SUSTAINABLE WASTE SOLUTIONS
NOVEMBER 2023
to take advantage of a humanitarian crisis. And 
with the sustainability objective, people are trying 
to enhance their processes, and that gives us a bit 
of pricing power. It’s got the best of both worlds: a 
steady stream of stock, but it’s also got the growth. 
That, to me, is unique.”
Amid the past two years of high in昀氀ation, the waste  
industry has demonstrated both resiliency and 
strong pricing power. And PE 昀椀rms have taken no-
tice, drawn to a sector that provides a critical service 
at a relatively affordable price point.
“A well-run company provides great returns in the 
waste sector, be that industrial waste or solid waste,” 
Cordesman of VLS said. “However, you also 昀椀nd a lot 
of companies where there is also alignment on sus-
tainability within our infrastructure network.”
With the de昀椀nition of essential infrastructure 
changing to include energy transition and other 
climate-related services, the waste sector is further 
generating interest and investment from various 
non-traditional sources.
“What’s interesting is that a lot of areas involving 
energy transition and climate change—those are get-
ting characterized as infrastructure opportunities,” 
said Peter Lux, President of Envita Solutions. “And 
because of that, it’s attracting new types of capital 
outside of traditional LBO and private equity capi-
tal. I think new forms of institutional capital coming 
in 
will 
drive 
more 
innovation 
and 
growth 
opportunities.”
As we look to 2024 and beyond, the sustainable 
waste sector remains highly attractive to both 
existing companies looking to build their share of 
wallet, along with new investors and entrants into 
the space.
“The white space out there is still extremely attrac-
tive,” said Michael Hess. “If you look at the number 
of hospitals, convenience stores, manufacturing, lo-
gistics and distribution companies that still manage 
their own waste—it’s amazing. Even within our own 
customer base, there’s a large share of wallet still 
available. On the M&A side, you have regional players 
who would like to service a national account, but they 
don’t have the reach. We’re starting to bump into 
that national vs. regional dynamic. Especially now, 
with the combination of Keter and Waste Harmonics, 
we see the opportunity across the whole industry as 
being incredibly strong.”
CONCLUSION
Looking to the next 10 years and beyond, Solomon 
Partners expects to see further evolution across the 
sustainable waste sector as changes in society are 
always re昀氀ected in our waste. Meanwhile, waste and 
environmental service providers will remain on the 
front lines, helping to create solutions for complicated 
and challenging waste streams while 昀椀nding ways to 
help customers measure and demonstrate progress 
towards de昀椀ned waste-related sustainability goals.
For these reasons, we continue to see a great 
deal of opportunity in the sector. The advent of 
sustainability and the drive towards enhanced trans-
parency around waste program activity are creating 
pockets of opportunity for out-sized growth. Further, 
we believe that we are only in the early innings of 
large waste generators enhancing their overall 
waste programs through the lens of sustainability, 
and over time will be increasingly willing to pay a 
premium for incremental progress towards de昀椀ned 
sustainability goals. 
Companies 
that 
approach 
these 
enormous 
challenges with an eye toward creativity and 
innovation will be well-positioned to capitalize on 
these growing market opportunities. Economically 
competitive 
solutions 
that 
meet 
customers’ 
sustainability objectives will help waste and envi-
ronmental service providers be in an advantaged 
position to gain share for the foreseeable future.
“
”
The white space out there 
is still extremely attractive.... 
if you look at the number 
of hospitals, convenience 
stores, manufacturing, 
logistics and distribution 
companies that still 
manage their own waste—
it’s amazing.
— Michael Hess, Executive Chairman, 
Keter/Waste Harmonics

13
SUSTAINABLE WASTE SOLUTIONS
NOVEMBER 2023
CURRENT STATE OF THE MARKET
• U.S. M&A deal volume continued to be slower than the prior two years - YTD deal volume was down 19.2% vs the 
same period in 2022(1)
• When compared to pre-pandemic levels and excluding the heightened level of M&A in 2021 and H1 2022, average 
quarterly US M&A deal volume was down only 7.6% compared to 2019(1)
• Moderating core in昀氀ation readings suggest an easing in upward consumer price pressure leading to the Fed’s 
pause in rapid-昀椀re rate hikes (fed funds rate at 5.25% today, highest in 22 years), which is creating a more certain 
economic and funding environment and as a result, CEOs and Boards are starting to see a “light at the end of  the 
tunnel”
• Probability of recession continues to be reduced with latest estimated probability of a U.S. recession starting within 
the next 12 months being reduced from 20% to 15%(2)
• While the traditional syndicated leverage market has been fairly muted, private lending has 昀椀lled the void to help 
buyers successfully complete transactions
• Private equity 昀椀rms still have a healthy backlog of assets to exit (and ample dry powder to deploy) which may cre-
ate pressure to transact and result in higher levels of deal volume over the next 12-18 months
$582 
$591 
$333 
$371 
$264 
$122 
$511 
$673 
$712 
$766 
$685 
$576 
$485 
$457 
$265 
$350 
$269 
$335 
$371 
2,473 2,786 
2,589 
2,425 
2,609 
1,839 
2,401 
2,765 
3,235 
3,471 
3,738 
3,847 
3,959 
3,411 
3,210 
3,086 3,424 
3,172 
2,358 
Q1
2019
Q2
2019
Q3
2019
Q4
2019
Q1
2020
Q2
2020
Q3
2020
Q4
2020
Q1
2021
Q2
2021
Q3
2021
Q4
2021
Q1
2022
Q2
2022
Q3
2022
Q4
2022
Q1
2023
Q2
2023
Q3
2023
Total Deal Value
Deal Count
$70
$108
$77
$68
$71
$44
$138
$177
$174
$270
$243
$204
$84
$93
$81
$72
$65
$74
$44
335
356
306
319
316
155
289
433
405
423
427
594
354
330
330
319
286
225
177
Q1
2019
Q2
2019
Q3
2019
Q4
2019
Q1
2020
Q2
2020
Q3
2020
Q4
2020
Q1
2021
Q2
2021
Q3
2021
Q4
2021
Q1
2022
Q2
2022
Q3
2022
Q4
2022
Q1
2023
Q2
2023
Q3
2023
Total Exit Value
Total Exits
U.S. M&A TRANSACTION VOLUME (1)
$ in billions
$ in billions
1) Dealogic; 2) Reuters; 3) Pitchbook.
MARKET UPDATE
PRIVATE EQUITY PLATFORM EXITS (3)

14
SUSTAINABLE WASTE SOLUTIONS
NOVEMBER 2023
M&A ACTIVITY WITHIN ENVIRONMENTAL & INDUSTRIAL SERVICES
PUBLIC COMPANY TRANSACTIONS(2)
PUBLIC COMPANY
SECTOR
‘21
‘22
YTD ‘23
Solid Waste
11
16
27
Solid Waste
9
14
3
Solid Waste
7
4
12
Solid Waste
2
5
3
Infra Support
2
2
4
Solid Waste
9
15
15
Special Waste
3
1
1
Plant 
Maintenance
2
1
7
Plant 
Maintenance
1
0
1
Infra Support
5
2
1
PRIVATE EQUITY TRANSACTIONS(2)
PUBLIC COMPANY
SPONSOR
SECTOR
‘21
‘22
YTD ‘23
Solid Waste
6
12
4
Solid Waste
4
7
3
Solid Waste
0
6
3
Solid Waste
7
4
2
Solid Waste
1
3
2
Infra Support
1
1
2
Special 
Waste
3
3
1
Infra Support
2
4
1
Solid Waste
1
1
1
Solid Waste
3
6
0
Infra Support
3
4
0
Organic 
Waste
4
2
0
•
M&A volume within the environmental and industrial services sector has been a pocket of healthy activity in 2023
relative to the broader market despite volumes being slower than prior years
•
We saw signi昀椀cant pre-marketing of transactions throughout the year as a way to test the market and gauge
receptivity while also providing logical buyers additional time to clear increasingly high diligence hurdles
•
Strategics, particularly within the waste sector, remained active on the M&A front although sizable deals have
been limited given the dif昀椀culty in obtaining anti-trust clearance
•
Leverage levels and increasing interest rates have forced certain strategics to slow down M&A and focus more on
deleveraging, creating opportunity for the infrastructure fund and private equity community to be more compet-
itive in processes
•
Infrastructure funds have continued to make a big push into the sector with several completed platform transac-
tions year to date and additional platforms under letter or near closing
•
Given slower activity, high quality assets that hit market received outsized level of attention among investors. In
particular, the increased competition helped several service businesses tied to durable end markets and with
strong growth and margin pro昀椀les close little to no value degradation from the higher interest rate / lower lever-
age environment
•
We expect the recently completed deals at premium valuations to provide con昀椀dence for sponsors on the side-
lines and, as a result, an increase in PE exits in the sector in 2024
1) Transaction volume is reﬂective of U.S. and Canadian transactions in the sector; 2) Transactions announced in trade magazines,
Capital IQ, Mergermarket, and Pitchbook.
ENVIRONMENTAL & INDUSTRIAL SERVICES TRANSACTION VOLUME(1)
50 
36 
34 
32 
42 
26 
39 
38 
64 
37 
63 
82 
75 
51 
66 
48 
61 
38 
36 
20 
21 
15 
16 
13 
12 
11 
20 
17 
16 
31 
46 
38 
23 
29 
33 
49 
31 
25 
70 
57 
49 
48 
55 
38 
50 
58 
81 
53 
94 
128 
113 
74 
95 
81 
110 
69 
61 
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
2019
2020
2021
2022
2023
# of transactions
Corporate
PE

15
SUSTAINABLE WASTE SOLUTIONS
NOVEMBER 2023
PUBLIC COMPANY PERFORMANCE BY SECTOR
SECTOR
COMAPNIES
STOCK 
PERFORMANCE
EV/EBITDA
SOLID WASTE
SPECIAL WASTE & 
FIELD SERVICES
INFRASTRUCTURE 
SUPPORT
PLANT 
MAINTENANCE
11.7x
14.5x
16.2x
18.3x
16.7x
15.0x
2018
2019
2020
2021
2022
Nov-23
41%
24%
L3Y
6%
15%
TTM
10.1x
14.2x
14.1x
11.1x
10.2x
10.6x
2018
2019
2020
2021
2022
Nov-23
33%
24%
L3Y
22%
15%
TTM
7.3x
10.0x
10.9x
13.4x
13.5x
12.1x
2018
2019
2020
2021
2022
Nov-23
75%
24%
L3Y
2%
15%
TTM
9.8x
9.7x
11.0x
8.1x
8.3x
10.6x
2018
2019
2020
2021
2022
Nov-23
165%
24%
L3Y
45%
15%
TTM
Source: Capital IQ as of November 6, 2023.
Industry Avg.
S&P 500

16
SUSTAINABLE WASTE SOLUTIONS
NOVEMBER 2023
PUBLIC COMPANY PERFORMANCE BY SECTOR
EV/EBITDA
21.8x
13.4x
14.3x
17.1x
14.6x
11.1x
7.7x
13.3x
8.3x
11.7x
REVENUE 
GROWTH(1)
11.6%
18.6%
13.4%
12.8%
3.6%
6.8%
6.7%
27.5%
NMF
NMF
EBITDA 
MARGIN
21%
24%
29%
31%
28%
18%
13%
16%
11%
18%
ROIC
4%
1%
8%
6%
10%
8%
3%
3%
4%
7%
(2)
Sources: Capital IQ, Pitchbook for most recently reported TTM period.
1) Year-over-year TTM pro forma ﬁnancials; 2) Latest reported period represents TTM Nov-23 performance; 
SOLID WASTE
SOLID WASTE
TECH-
ENABLED

17
SUSTAINABLE WASTE SOLUTIONS
NOVEMBER 2023
PUBLIC COMPANY PERFORMANCE BY SECTOR
EV/EBITDA
11.0x
20.3x
7.6x
12.3x
8.8x
11.0x
17.5x
8.3x
13.1x
11.1x
7.7x
REVENUE 
GROWTH(1)
21.4%
13.8%
10.8%
1.4%
36.7%
25.6%
17.7%
32.9%
15.2%
12.3%
0.2%
EBITDA
MARGIN
16.3%
8.3%
10.6%
4.8%
6.9%
5.2%
8.3%
6.6%
10.7%
7.3%
7.7%
ROIC
9.2%
3.6%
9.9%
3.4%
2.2%
11.3%
6.6%
6.7%
4.6%
18.2%
3.2%
Sources: Capital IQ, Pitchbook for most recently reported TTM period.
1) Year-over-year TTM pro forma ﬁnancials; 2) Latest reported period represents TTM Nov-23 performance; 3) Non-meaningful 
statistic removed as company reported negative EBITDA.
INFRASTRUCTURE
PLANT MAINTENANCE

18
SUSTAINABLE WASTE SOLUTIONS
NOVEMBER 2023
Founded over 30 years ago, Solomon Partners is a leading ﬁnancial advisory ﬁrm with a legacy as 
one of the oldest independent investment banks. We advise on mergers, acquisitions, restructurings, 
recapitalizations, SPACs, capital markets solutions, and activism defense across a range of industries, 
including Business Services, Consumer Retail, Financial Services & FinTech, Financial Sponsors, Grocery, 
Pharmacy & Restaurants, Healthcare, Industrials, Infrastructure, Power & Renewables, Media, Technology, 
and Telecommunications.
We offer unmatched industry knowledge in the sectors we cover, providing comprehensive strategic 
solutions tailored to generate long-term shareholder value. Our goal is to bring the partnership’s collective 
wisdom and knowledge to reach the optimum value of a transaction and to create an enduring advisory 
relationship. Our advice is grounded in intellectual integrity and free from conﬂicts of interest. 
Today Solomon Partners is an independently operated afﬁliate of Natixis, part of Groupe BPCE, a top 10 
European and a top 20 global bank. Our clients enjoy proprietary access to an international advisory and 
ﬁnancing platform with coverage throughout North and South America, EMEA and Asia. 
For further information visit solomonpartners.com.
ABOUT SOLOMON PARTNERS
BUSINESS SERVICES GROUP
Tim Shea
Partner
Head of Business Services
tim.shea@solomonpartners.com
Robbie Kelley
Managing Director
robbie.kelley
@solomonpartners.com
Michael Vinciguerra
Managing Director
michael.vinciguerra
@solomonpartners.com
Connor Mitchell
Managing Director
connor.mitchell
@solomonpartners.com
Al Torabi
Vice President
al.torabi
@solomonpartners.com
Jonathan Goldstein
Associate
jonathan.goldstein
@solomonpartners.com
Austin May
Vice President
austin.may
@solomonpartners.com
Vitalie Djugostran
Vice President
vitalie.djugostran
@solomonpartners.com
Alex DeVries
Associate
alex.devries
@solomonpartners.com
Neel Patel
Associate
neel.patel
@solomonpartners.com
Ben Daniel
Analyst
ben.daniel
@solomonpartners.com
Jason Crowe
Associate
jason.crowe
@solomonpartners.com
Connor Sheridan
Analyst
connor.sheridan
@solomonpartners.com
Lucas Epstein
Analyst
lucas.epstein
@solomonpartners.com

19
SUSTAINABLE WASTE SOLUTIONS
NOVEMBER 2023
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