Stout Advises Priority Waste on a Leveraged Recapitalization

Stout has advised Priority Waste on a successful leveraged recapitalization completed in conjunction with TPG Angelo Gordon.The transaction closed on November 1, 2024. Stout served as the exclusive advisor to Priority Waste in all aspects of the financing process, including strategic advice, market approach, structuring, and negotiation of the financing terms.

Priority Waste, one of the largest independent solid waste services providers in the United States, is reinventing the industry with its focus on technology, people, and process to maximize efficiency and customer satisfaction. The company’s one-of-a-kind proprietary technology powers an integrated command center from which experienced logistics professionals deliver seamless coordination, thereby ensuring best-in-class customer service. Since its founding in 2018, Priority Waste has expanded rapidly and now serves over 1.1 million customers in over 100 municipalities across Michigan, Indiana, and Ohio.

The financing secured via this transaction was used to redeem the majority investment of an existing investor in the company. The financing will also support Priority’s long-term strategy of identifying and executing growth investments in attractive new geographies as well as unlocking value from acquisitions by leveraging its unique operating model and capabilities.

“Priority Waste has built a truly differentiated platform in the industry, leveraging technology and operational expertise to drive efficiency and customer satisfaction,” said Sid Chhabra, Managing Director at Stout. “This recapitalization marks a significant step in their strategic growth journey, and we are honored to have played a role in securing the right financial partner to support their long-term vision.”

“Executing a transaction of this scale requires a deep understanding of both the business and the capital markets landscape,” said Jeff Zolkin, Managing Director at Stout. “We worked closely with Priority Waste to structure a tailored financing solution that provides immediate value and sets the stage for future expansion. The strong interest from investors is a testament to the company’s strength and potential.”

The Stout team was led by Sid Chhabra, Managing Director and Head of Environmental Services, and Jeff Zolkin, Managing Director and Head of Capital Markets. Stout’s Nick Dreps, Natalie Walgren, Jack Dunsire, and Eric Unverzagt also assisted in the execution of the transaction.

Bodman PLC served as legal counsel to Priority Waste and Milbank LLP served as legal counsel to TPG.