Interstate Waste Services Completes Merger Combining Action Environmental Group and Apex Environmental

Littlejohn & Co. Makes Strategic Equity Investment

Combined Company will Operate Under Interstate Waste Services ("IWS") Brand

Interstate Waste Services, Inc. ("IWS") and Littlejohn & Co., LLC ("Littlejohn"), a private investment firm based in Greenwich, CT, today announced the merger of The Action Environmental Group, Inc. and Apex Environmental Resources Holdings II LLC ("Apex"). The combined company will operate under the Interstate Waste Services brand. Littlejohn led the equity financing to facilitate the transaction.

IWS is the largest privately-held, vertically-integrated provider of solid waste collection, transfer, recycling and disposal services serving the greater New York City and Northern New Jersey markets. IWS operates nearly 400 collection vehicles throughout the five boroughs of New York City, Northern and Central New Jersey, and Orange and Rockland County, New York; a network of 22 transfer and transload facilities; and a rail-served solid waste landfill in Amsterdam, Ohio.

"This transaction creates a tremendous platform for continued growth and will enable us to offer greater scale and services for our customers," said Michael DiBella, Founder and Chief Executive Officer of IWS. "IWS’s expansion and development over the past 20 years has been driven by our hard-working employees and the support of our key financial partners and business stakeholders. We welcome Apex management into the IWS family and are grateful for the support and partnership of Littlejohn, who share our vision and recognize the significant opportunities ahead as we continue to execute on our growth plans."

Summer Street Capital Partners LLC, an original investor in IWS, and Prophet Equity, the majority investor in Apex, and management are maintaining significant equity interests in the business. O-Corp Investments, LLC participated in the equity financing alongside Littlejohn.

Brian Michaud, a Managing Director at Littlejohn, said, "The combination of IWS and Apex is highly strategic, creating a vertically-integrated platform with significant growth potential. We are pleased to partner with the IWS management team and existing shareholders to support the merger and the Company’s growth initiatives."

GSO Capital Partners, the credit investment arm of Blackstone, led the debt financing. Longtime IWS lending partners, Comerica Bank and Brightwood Capital, also participated in the debt financing.

Stifel acted as sole placement agent in connection with the equity and debt financing to support the transaction. Houlihan Lokey, Inc. acted as Littlejohn’s financial advisor.

About Interstate Waste Services, Inc.

Interstate Waste Services, Inc. ("IWS") is a vertically-integrated provider of solid waste and recycling services in the greater New York City and Northern New Jersey markets. IWS operates nearly 400 collection vehicles throughout the five boroughs of NYC, Northern and Central NJ, and Orange and Rockland County New York serviced by a network of 22 transfer, transload facilities and a rail-served solid waste landfill. IWS is one of the most progressive and innovative providers of non-hazardous waste management services with a diverse range of residential, industrial and commercial customers. For more information, please visit www.interstatewaste.com.

About Littlejohn & Co., LLC

Littlejohn & Co. is a Greenwich, Connecticut-based investment firm focused on private equity and debt investments primarily in middle market companies. With over $12.0 billion in regulatory assets under management, the firm seeks to build sustainable success for its portfolio companies through a disciplined approach to engineering change. For more information about Littlejohn, visit www.littlejohnllc.com.

About O-Corp Investments, LLC

Headquartered in New York City, O-Corp Investments is the investment arm of the Olshan Family and directs capital on their behalf. O-Corp takes long-term positions in both public securities and privately held companies, primarily in the real estate, infrastructure, natural resources and industrial sectors. The firm invests in high quality platform businesses, assets and management teams that compound at attractive rates of return over long periods of time.

View source version on businesswire.com: https://www.businesswire.com/news/home/20200122005396/en/

Contacts

For Interstate Waste Services, Inc.
Tracie Truncellito
ttruncellito@interstatewaste.com
https://www.interstatewaste.com/

For Littlejohn & Co.
Nathaniel Garnick
Gasthalter & Co.
(212) 257-4170