Twin Enviro Services - Comprehensive Analysis Report

Summary

Twin Enviro Services, established in 1971, was a long-standing waste management and recycling provider in Colorado with over 50 years of family ownership. The company focused on delivering waste transportation, disposal, and recycling services to residential and commercial clients, operating solid and liquid waste disposal sites near Steamboat Springs, Craig, and Cañon City. Its core mission was to protect the environment by diverting reusable items from landfills, promoting recycling, and ensuring environmentally responsible waste disposal. In July 2024, Twin Enviro Services was acquired by Apex Waste Solutions, integrating its operations to become a pivotal part of Apex-Twin Enviro Steamboat, significantly expanding Apex's market presence and solidifying its position as a leading independent, vertically integrated waste services provider in Colorado.

1. Strategic Focus & Objectives

Core Objectives

Prior to its acquisition, Twin Enviro Services' primary objective was to provide vertically integrated solid waste services across Colorado's Western Slope, encompassing waste transportation, disposal, and recycling. Operational assets included two landfills, one material recycling facility (MRF), and three hauling operations.

Post-acquisition, as part of Apex Waste Solutions, the integrated entity focuses on adding density in existing markets and expanding into adjacent geographies. A key long-term objective is to enhance post-collection infrastructure, including significant upgrades to the recycling facility at the Milner Landfill to accommodate higher volumes and reduce transportation costs of recyclables.

Specialization Areas

Twin Enviro Services specialized in a diverse range of services, including curbside trash service, septic clean-out, portable toilet rentals, grease trap and sand trap services, roll-off containers, and comprehensive waste and recycling collection for residential and commercial customers. The company also operated a tank washing facility and offered pipeline "PIG" cleaning. Furthermore, Twin Landfill Corporation, operating as Twin Enviro Services, was recognized as a veteran-owned small business, providing specialized waste management and environmental services, including non-hazardous solid waste management and sludge disposal, for federal agencies.

Target Markets

The company primarily served residential and commercial customers across Colorado, specifically in Routt, Moffat, Fremont, and Las Animas Counties. Post-acquisition, the combined entity aims to expand its reach across the Colorado Front Range and Western Slope, also continuing its engagement with federal agencies for specialized environmental services.

2. Financial Overview

Funding History

Twin Enviro Services was acquired by Apex Waste Solutions, a portfolio company of Kinderhook Industries, LLC, in July 2024. The specific financial terms of the acquisition were not publicly disclosed. This transaction, alongside other acquisitions by Apex, received debt financing from a syndicate of banks led by Comerica Bank, with additional participation from Webster Bank, Fifth Third Bank, and Huntington Bank. Kinderhook Industries, LLC, established in 2003, is a private investment firm with over $10 billion of committed capital, specializing in middle-market businesses within sectors such as environmental and industrial services. The acquisition marked a significant investment, enabling Apex Waste Solutions to expand its footprint and become a more dominant, vertically integrated waste services provider.

3. Product Pipeline

Key Products/Services

Twin Enviro Services offered a comprehensive suite of waste management and recycling solutions:

• Curbside Trash Service: Regular residential waste collection.

• Waste and Recycling Collection: Services for both residential and commercial clients, including collection of commingled recyclables and sorted materials.

• Landfill Operations: Management and operation of solid waste disposal sites, including the Milner Landfill in Steamboat Springs and Phantom Landfill near Cañon City.

• Material Recycling Facility (MRF): Operations at Milner Mall complex in Steamboat Springs for sorting and processing various recyclable materials. Plans are in place for significant upgrades.

• Composting Facility: An operational facility also located at the Milner Mall complex for organic waste processing.

• Septic Clean-out and Portable Toilet Rentals: Specialized liquid waste services.

• Grease Traps, Sand Traps, Roll-off Containers: Commercial and industrial waste solutions.

• Tank Washing Facility: Located in Trinidad.

• Pipeline "PIG" Cleaning: Specialized cleaning services from its Cañon City location.

• Environmental Cleanup Services: Addressing various environmental remediation needs.

• Federal Agency Support: Non-hazardous solid waste management, sludge disposal, and portable latrine provision for federal contracts, leveraging its veteran-owned small business status.

Development Stage: These services are established and form the core offerings. The material recovery facility (MRF) at Milner Landfill is undergoing upgrades to enhance its processing capabilities.
Target Market: A broad spectrum including residential households, small to large businesses, industrial clients, and governmental agencies.
Key Features and Benefits: Offers a vertically integrated approach, from collection to disposal and recycling, emphasizing environmental responsibility and comprehensive service coverage.

4. Technology & Innovation

Technology Stack

Twin Enviro Services operated a material recycling facility (MRF) and a composting facility at its Milner Mall complex. The recycling facility integrates systems for sorting various materials, including cardboard, and employs equipment for compacting hand-sorted plastics and other recyclables.

Technical Capabilities

The company's technical capabilities include efficient waste collection and transportation logistics, advanced material sorting at its MRF, and environmentally compliant landfill operations. Through planned upgrades, the Steamboat Springs recycling facility will feature new equipment for enhanced compaction, allowing higher volumes of recyclables to be packed into trucks, thereby reducing transportation costs to larger processing centers. Efforts also include supporting environmental testing through a sister company, ACZ Laboratories, Inc., facilitating compliance testing and waste disposal approval processes. The company demonstrates expertise in strategic waste management solutions for complex operational requirements, particularly for federal contracts.

5. Leadership & Management

Executive Team

• Les Liman: Founder and former CEO of Twin Enviro Services. He played a pivotal role in the company's growth over five decades and remained active until the acquisition.

• Mrs. Tori Markley: Controller at Twin Enviro Services, contributing to the financial oversight of the company.

Following the acquisition by Apex Waste Solutions, the integrated operations are managed by Apex's executive team:

• Scott Lukach: CEO of Apex Waste Solutions.

• Scott Jenkins: Chief Operating Officer (COO) of Apex Waste Solutions.

• Lacie Coupe: General Manager at Apex-Twin Enviro.

Recent Leadership Changes

In July 2024, upon the acquisition of Twin Enviro Services by Apex Waste Solutions, Les Liman, the founder and CEO, transitioned from his leadership role. This change marked the integration of Twin Enviro's operations and leadership into the broader structure of Apex Waste Solutions.

6. Talent and Growth Indicators

Hiring Trends and Workforce

Prior to the acquisition, Twin Enviro Services employed approximately 70-75 individuals across various counties in Colorado (Routt, Moffat, Fremont, and Las Animas). Post-acquisition, the workforce and operations were integrated into Apex Waste Solutions.

Company Size and Expansion Metrics

The acquisition integrated approximately 8,000 customers specifically from Routt and Moffat counties into Apex Waste Solutions. The combined Apex-Twin Enviro entity now serves an estimated 100,000 customers across multiple markets within Colorado. A key indicator of growth is the planned expansion and upgrade of the recycling center at the Milner Landfill, which previously operated at roughly one-third of its annual capacity. With upgrades, this facility is now capable of processing up to 15,000 tons of recyclables annually, demonstrating a significant increase in operational throughput and potential for growth.

8. Recognition and Awards

Industry Recognition

Twin Enviro Services maintained a strong reputation, reflected in an overall customer rating of 5.0 out of 5 based on customer reviews. The company was also recognized as a supporter of the Yampa Valley Sustainability Council, highlighting its commitment to environmental stewardship and community engagement.

9. Competitive Analysis

Major Competitors

In the Colorado waste management sector, Twin Enviro Services (and now Apex Waste Solutions) operated within a competitive landscape.

• Republic Services: This company is a notable competitor, particularly offering recycling services in areas like Cañon City.

• WM (Waste Management): Previously a significant competitor in the region. Apex Waste Solutions strategically acquired certain WM assets, including a transfer station and three hauling operations in the Steamboat Springs area. This move by Apex consolidated a portion of the market and reduced direct competition from WM in specific regions, while also expanding Apex's infrastructure.

10. Market Analysis

Market Overview

The market for environmental services in Colorado, particularly within solid waste management and recycling, is characterized by consolidation and strategic investments. The acquisition of Twin Enviro Services by Apex Waste Solutions exemplifies a broader trend towards creating vertically integrated service providers. These integrated entities manage the entire waste stream, from collection and hauling to disposal and material recovery, enhancing operational efficiency and customer service.

Growth Potential

The market exhibits strong growth potential, driven by continuous population expansion in Colorado and increasing emphasis on sustainable waste management practices. Investments in upgrading recycling facilities and expanding service areas are key indicators of this potential.

Key Market Trends

• Consolidation and Vertical Integration: A prevalent trend where smaller, regional players are acquired by larger entities to create more comprehensive and integrated service providers.

• Investment in Recycling Infrastructure: Significant capital is being allocated to enhance and expand material recovery facilities, improving sorting capabilities and compaction efficiency to handle increased volumes and reduce transportation costs.

• Sustainability and Regulatory Influence: Growing awareness of environmental impact, coupled with evolving regulations and sustainability commitments, drives innovation and upgrades in waste diversion and processing technologies.

• Efficient Transportation and Logistics: Efforts to optimize logistics, such as achieving higher compaction rates for recyclables, are crucial for reducing operational costs and environmental footprint.

Market Challenges and Opportunities

Challenges include managing regulatory complexities, intense competition from established national and regional players, and the continuous need for capital investment in infrastructure. Opportunities lie in expanding integrated service offerings across new geographies, leveraging advanced recycling technologies, and catering to the increasing demand for sustainable and environmentally responsible waste solutions.

11. Strategic Partnerships

The most significant strategic development for Twin Enviro Services was its acquisition by Apex Waste Solutions in July 2024. This integration positioned the combined entity as a leading independent, vertically integrated solid waste services provider expanding across the Colorado Front Range and into the Western Slope. Apex Waste Solutions is a portfolio company of Kinderhook Industries, LLC, providing substantial financial backing and strategic guidance.