Northstar Recycling Co., an “asset-light” waste and recycling service provider, has acquired Sonoco Sustainability Solutions (S3). Financial terms were not disclosed.
S3 has operated as a division of global packaging company Sonoco for 17 years. Both companies work with multifacility manufacturers and distributors in the food, consumer packaged good and industrial sectors to advance waste diversion and beneficial reuse programs.
“We are pleased to be joining forces with S3 to expand our combined capabilities, customer base, and subject matter expertise,” said Northstar CEO Seth Goodman and President Noah Goodman in a joint statement. “S3’s business model is highly-complementary to that of Northstar, and this acquisition enhances the combined business’ ability to serve current and future customers and vendors at scale.”
Massachusetts-based Northstar, which provides a range of services for refuse, recyclables and organics, is a portfolio company of Ridgemont Equity Partners, a private equity firm. Ridgemont acquired its stake in the company in late 2021. Northstar acquired California-based Complete Recycling last year.
South Carolina-based Sonoco, which has been working to simplify its portfolio in recent months, described this as a mutually beneficial deal.
“S3 and Northstar have shared the same mission for many years, which is to help develop innovative and executable strategies for companies to reduce their environmental footprints and increase their sustainability efforts by turning material waste into a material resource,” said Palace Stepps, president of Sonoco Recycling. “Sonoco looks forward to continuing a strategic relationship with Northstar, as we remain committed to the business’ success in partnership with the founders of Northstar and Ridgemont Equity Partners.”
Sonoco Recycling, a unit of the broader packaging company, continues to operate its own MRF assets, which grew with the acquisition of North Carolina-based American Recycling in 2021.
This transaction is another example of larger packaging companies divesting their waste services or consulting businesses. WestRock sold its brokerage business to Rubicon in 2018.
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